The Internal Revenue Service (IRS) provides a toll-free help line for taxpayers to call in and get answers to questions as they prepare their tax returns. In recent years, the IRS has been inundated with taxpayer calls and has redesigned its phone service as well as posted answers to frequently asked questions on its website (7The Cincinnati Enquirer, January 7, 2010). According to a report by a taxpayer advocate, callers using the new system can expect to wait on hold for an unreasonably long time of 12 minutes before being able to talk to an IRS employee. Suppose you select a sample of 50 callers after the new phone service has been implemented; the sample results show a mean waiting time of 10 minutes before an IRS employee comes on the line. Based upon data from past years, you decide it is reasonable to assume that the standard deviation of waiting time is 8 minutes. Using your sample results, can you conclude that the actual mean waiting time turned out to be significantly less than the 12-minute claim made by the taxpayer advocate? Use a= .05.

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Contingency Table

A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.

Binomial Distribution

Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.