Sorry for the 2 posts but I thought it would be better if I divided up my questions.
The questions is:
A family of mutual funds maintains a service that allows clients to switch money between accounts through a telephone call. It was estimated that 3.2% of callers either get a busy signal, or get kept on hold for so long they hang up. Fund management asseses any failure of this sort as a $10 good-will loss. Suppose that 2,000 calls are attempted.
A) Find the mean and standard deviation of the number of callers who will either hang up or get a busy signal.
B)Find the mean and standard deviation of the total goodwill losses to the mutual fund company from those 2,000 calls.
For A, I tried 2000x3.2=6400 and interperated that as mean=64. Was this the correct way of going about this or was it just a lucky coincidence?
I cannot think of a way to solve for the variance because I dont know how to interpret the data in a way that would let me plug in numbers into a variance formula. Someone help please