Average Telephone Time on Hold Narrative

question 108

Essay

Average Telephone Time on Hold Narrative
A customer service representative was interested in comparing the average time (in minutes) customers are placed on hold when calling Gaz Metropolitain and Hydro-Quebec, both in Quebec. The representative obtained two independent random samples and calculated the following summary information: Assume the distributions of time a customer is on hold are approximately normal.
-Refer to Average Telephone Time on Hold Narrative. Is it reasonable to assume equality of variances in this ? Justify your answer.

---

Definitions:

Prior Service Cost Amortization

involves the gradual recognition of the expenses related to pension plan benefits earned by employees in previous periods, over current and future periods.

Defined Benefit Pension Plan

A retirement plan where employee benefits are calculated using a formula that considers factors like length of employment and salary history, with the employer bearing the investment risk.

Projected Benefit Obligation

The present value of all the benefits earned by employees, according to their pension plan up to the measurement date.

Amortization of Prior Service Cost

The process of gradually recognizing the costs of benefits earned by employees in earlier periods in the pension expense over the service life of the employees.