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 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 standard error of the mean is calculated by dividing the standard deviation by the square root of the sample size. Therefore, the standard error of the mean for the 100 returns is (14 / sqrt(100)) = 1.4 minutes.

Bones Brothers & Associates Prepare Individual Tax Returns