Bones Brothers Associates prepare individual tax returns Ov

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. 1.4 minutes

C. 90 minutes

D. 140 minutes

Solution

Standard Error= sd/ Sqrt(n)
Where,
sd = Standard Deviation
n = Sample Size

Standard deviation( sd )=14
Sample Size(n)=100
Standard Error = ( 14/ Sqrt ( 100) )
= 1.4

[ANSWER] A. 14 minutes