1 A companys customer support division want to test to see i

1. A company\'s customer support division want to test to see if that wait time for a consumer to talk to a representative is under 10 minutes. The manager proposes to test one case where a a consumer was placed on hold. Is this a good testing strategy? If not what would be a better testing strategy? Could you form a Null Hypothesis or an Alternative Hypothesis? If yes, what would they be. 2. Using a specific example explain what a point estimation is and a confidence interval is.

Solution

1. Testing if the consumer was kept on hold is not a good strategy as keeping on hold does not imply that the time is over 10 minutes. Sometimes the hold duration is less than 10 minutes, which does not lead to a lot of wait time.

A better test procedure is to use a hypothesis testing where the sampling distriubtion consists of large number of wait times, so that the distribution can be approximated to normal distribution.

Null hypothesis: Mean wait time is 10 minutes

Alternate hypothesis: Mean wait time is less than 10 minutes

2. Using the above example, point estimate of mean wait time is the sample mean, which provides a single approximate value of the population mean wait time.

Confidence interval provides an interval with a probability that the population mean wait time lies in this interval.