The bank of American issues Visa and MasterCard credit cards. It is known that the balances on all cards issued by BOA have a mean of $756 and a standard deviation of $210. Assume the balances on those cards are normally distributed. a) Find the probability that randomly selected credit card issues by BOA have a balance over $1000. b) Find the probability that the average of 20 selected credit cards issued by BOA has a balance over $1000. c) BOA is planning to send free gifts to the top 10% of card holders with high balance. What is the cut-off balance for free gift?

The bank of American issues Visa and MasterCard credit cards. It is known that the balances on all cards issued by BOA have a mean of $756 and a standard deviation of $210. Assume the balances on those cards are normally distributed. a) Find the probability that randomly selected credit card issues by BOA have a balance over $1000. b) Find the probability that the average of 20 selected credit cards issued by BOA has a balance over $1000. c) BOA is planning to send free gifts to the top 10% of card holders with high balance. What is the cut-off balance for free gift?

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Concept explainers

Estimation

A new framework of data analysis where the new statistical methods are used for interpreting the results and analyzing the data is known as estimation in statistics.

Question

The bank of American issues Visa and MasterCard credit cards. It is known that the balances
on all cards issued by BOA have a mean of $756 and a standard deviation of $210. Assume the
balances on those cards are normally distributed.
a) Find the probability that randomly selected credit card issues by BOA have a balance over
$1000.
b) Find the probability that the average of 20 selected credit cards issued by BOA has a balance
over $1000.
c) BOA is planning to send free gifts to the top 10% of card holders with high balance. What is
the cut-off balance for free gift?

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