Many retail stores offer their own credit cards. At the time of the credit application the
customer is given a 10 percent discount on the purchase. The time required for the credit
application process follows a uniform distribution with the times ranging from 4 minutes
to 10 minutes.
a. What is the mean time for the application process?
b. What is the standard deviation of the process time?
c. What is the likelihood a particular application will take less than 6 minutes?
d. What is the likelihood an application will take more than 5 minutes?
The solution provides step by step method for the calculation of uniform probabilities. Formula for the calculation and Interpretations of the results are also included.