The First Chicago Bank is reviewing its service charges and interest-paying policies on checking accounts. The daily balance of a checking account is defined to be the balance in the checking account at 2:00pm. The bank has found that for all personal checking accounts the mean of all the daily balances is $ 750 and the standard deviation is $150. In addition, the distribution of personal checking account daily balances can be approximated very well with a normal model. Question 1. What percentage of the bank's customers carry daily balances between $700 and $1,000? (Use 2 decimal places in your answer. Note that the answer is requested as a PERCENT, that is, a value between 0 and 100) Example, if you got 0.1234, you should enter it as 12.34 Question 2. The bank is considering paying interest to customers carrying daily checking account balances in excess of a certain amount. If the bank does not want to pay interest to more than 4% of its checking account customers, what is the minimum daily balance on which it should be willing to pay interest? (Round your answer to the nearest dollar)
Inverse Normal Distribution
The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.
Mean, Median, Mode
It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.
Z-Scores
A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.
The First Chicago Bank is reviewing its service charges and interest-paying policies on checking accounts. The daily balance of a checking account is defined to be the balance in the checking account at 2:00pm.
The bank has found that for all personal checking accounts the mean of all the daily balances is $ 750 and the standard deviation is $150.
In addition, the distribution of personal checking account daily balances can be approximated very well with a normal model.
Question 1. What percentage of the bank's customers carry daily balances between $700 and $1,000?
(Use 2 decimal places in your answer. Note that the answer is requested as a PERCENT, that is, a value between 0 and 100) Example, if you got 0.1234, you should enter it as 12.34
Question 2. The bank is considering paying interest to customers carrying daily checking account balances in excess of a certain amount. If the bank does not want to pay interest to more than 4% of its checking account customers, what is the minimum daily balance on which it should be willing to pay interest? (Round your answer to the nearest dollar)
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