Statistics for Business and Economics (13th Edition)

13th Edition

ISBN: 9780134506593

Author: James T. McClave, P. George Benson, Terry Sincich

Publisher: PEARSON

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Chapter 4.4, Problem 4.70ACB

FDIC bank failures. The Federal Deposit Insurance Corporation (FDIC) normally insures deposits of up to $100,000 in banks that are members of the Federal Reserve System against losses due to bank failure or theft. Over the last 10 years. the average number of bank failures per year among insured banks was 52 (FDIC Failed Bank List, 2016). Assume that x, the number of bank failures per year among insured banks, can be adequately characterized by a Poisson probability distribution with mean 52.

a. Find the expected value and standard deviation of x.
b. In 2010, 157 banks failed. How far (in standard deviations) does x = 157 lie above the mean of the Poisson distribution? That is, find the z-score for x = 157.
c. In 2015, 8 banks failed. Find P(x ≤ 8).

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Chapter 4.4, Problem 4.69ACB

Chapter 4.4, Problem 4.71ACB

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Chapter 4 Solutions

Statistics for Business and Economics (13th Edition)

Ch. 4.1 - Types of random variables. Which of the following...Ch. 4.1 - Types of finance random variables. Security...Ch. 4.1 - NHTSA crash tests. Refer to the National Highway...Ch. 4.1 - Customers in line at a Subway shop. The number of...Ch. 4.1 - Executive pay. Refer to Glassdoor Economic...Ch. 4.1 - Banking. Give an example of a discrete random...Ch. 4.1 - Economics. Give an example of a continuous random...Ch. 4.1 - Hotel management. Give an example of a discrete...Ch. 4.1 - Retailing. Give two examples of discrete random...Ch. 4.1 - Stock market. Give an example of a continuous...

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