Bones Brothers & Associates prepare individual tax returns. Over prior years,Bones Brothers has maintained careful records regarding the time to prepare a return. The mean time to prepare a return is 90 minutes,and the population standard deviation of this distribution is 14 minutes. Suppose 100 returns from this year are selected and analyzed regarding the preparation time. What is the standard error of the mean?
A)14 minutes
B)140 minutes
C)1.4 minutes
D)90 minutes

Question

Quizplus · Accepted Answer

The formula to calculate the standard error of the mean is:

Standard Error of the Mean = Population Standard Deviation / Square Root of Sample Size

Population Standard Deviation = 14 minutes (given)
Sample Size = 100 returns (given)

Therefore,

Standard Error of the Mean = 14 / √100 = 1.4 minutes

Hence, the best choice is C) 1.4 minutes.

Bones Brothers & Associates Prepare Individual Tax Returns