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Midland National Bank selected a sample of 40 student

Basic Statistics for Business and Economics | 7th Edition | ISBN: 9780077384470 | Authors: Douglas Lind; William Marchal; Samuel Wathen ISBN: 9780077384470 64

Solution for problem 40E Chapter 2

Basic Statistics for Business and Economics | 7th Edition

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Basic Statistics for Business and Economics | 7th Edition | ISBN: 9780077384470 | Authors: Douglas Lind; William Marchal; Samuel Wathen

Basic Statistics for Business and Economics | 7th Edition

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1
Problem 40E

Midland National Bank selected a sample of 40 student checking accounts. Below are their end-of-the-month balances.

$404

$74

$234

$149

$279

$215

$123

$55

S 43

$321

87

234

68

489

57

185

141

758

72

863

703

125

350

440

37

252

27

521

302

127

968

712

503

489

327

608

358

425

303

203

a. Tally the data into a frequency distribution using $100 as a class interval and $0 as the starting point.

b. Draw a cumulative frequency polygon.

c. The bank considers any student with an ending balance of $400 or more a “preferred customer.” Estimate the percentage of preferred customers.

d. The bank is also considering a service charge to the lowest 10 percent of the ending balances. What would you recommend as the cutoff point between those who have to pay a service charge and those who do not?

Step-by-Step Solution:

Answer:

Step 1 of 4:

(a)

We are asked to tally the data into a frequency distribution using $100 as a class interval and $0 as the starting point.

Midland National Bank selected a sample of 40 students checking accounts.

We have given their end-of-the-month balances.

$404

$74

$234

$149

$279

$215

$123

$55

S 43

$321

87

234

68

489

57

185

141

758

72

863

703

125

350

440

37

252

27

521

302

127

968

712

503

489

327

608

358

425

303

203

Frequency Distribution: A grouping of quantitative data into mutually exclusive classes showing the number of observations in each class.

End-of-the-month balances (in dollars)

Number of student accounts

Cumulative Frequency

0-100

9

9

100-200

6

15

200-300

6

21

300-400

6

27

400-500

5

32

500-600

2

34

600-700

1

35

700-800

3

38

800-900

1

39

900-1000

1

40

Total

40

Step 2 of 4:

(b)

We are asked to draw a cumulative frequency polygon.

We can draw this using Minitab (Scatter plot).

Step 3 of 3

Chapter 2, Problem 40E is Solved
Textbook: Basic Statistics for Business and Economics
Edition: 7
Author: Douglas Lind; William Marchal; Samuel Wathen
ISBN: 9780077384470

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