Ask Question
3 July, 06:23

A local bank surveyed the status of ASU student accounts and found that the average overdraft was $21.22 with a standard deviation of $5.49. If the distribution is normal, find the probability of a student being overdrawn by more than $18.75.

+5
Answers (1)
  1. 3 July, 07:50
    0
    Answer: the probability of a student being overdrawn by more than $18.75 is 0.674

    Step-by-step explanation:

    Since the bank overdrafts of ASU student accounts are normally distributed, we would apply the formula for normal distribution which is expressed as

    z = (x - µ) / σ

    Where

    x = bank overdraft of Asu students.

    µ = mean

    σ = standard deviation

    From the information given,

    µ = $21.22

    σ = $5.49

    We want to find the probability of a student being overdrawn by more than $18.75. It is expressed as

    P (x > 18.75) = 1 - P (x ≤ 18.75)

    For x = 18.75,

    z = (18.75 - 21.22) / 5.49 = - 0.45

    Looking at the normal distribution table, the probability corresponding to the z score is 0.326

    Therefore,

    P (x > 18.75) = 1 - 0.326 = 0.674
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “A local bank surveyed the status of ASU student accounts and found that the average overdraft was $21.22 with a standard deviation of ...” in 📙 Mathematics if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers