Q1are the results of the survey by Fujitsu Consulting reflective of countries in the Australian regions? Explain your reasoning?

Q2:The study reports that only one in four customers of the big four was satisfied with all three products.If you randomly selected 25 customers of the big four in Perth,what would be the probability that 10 or more of them were satisfied with all three products?

- In recent years the banking industry has faced many challenges and opportunities. In 2004 Australia's largest bank, the National Australia Bank, was shaken by losses of hundreds of millions of dollars in foreign currency trading. Throughout the 1990s, the four biggest Australian banks the National Australia Bank, Westpac, the Commonwealth Bank of Australia and the ANZ - all struggled to maintain profit levels. In fact, the gross income as a ratio of assets for Australian bank fell from 4.2% in 1992 to 2.9% in 2001. Nevertheless, banks have made record profits over the last few years, mainly due to business lending and wealth management. National Australian Bank recorded a profit of $4.5 billion for the financial year (ending September 2008), a fall of 0.9% on the previous year. Similarly, Westpac reported an end-of-year profit of $3.72 billion of the 2007 financial year (up 6% from the previous year), the ANZ reported a profit of $3.32 billon (down 21% from the previous year), the Commonwealth Bank reported an annual profit of $4.8 billion (to July 2008, up 7% from the previous year). However, the recent subprime mortgage crisis in the United States has affected the Australian markets. In March 2008, the banking sector subindex slumped 39% from the November 2007 highs, compared to a 25 percent fall in the benchmark S&P/ASX 200. The problems are compounded by rising interest rates in Australia and the credit squeeze abroad, combining to push up the funding cots for banks. The Reserve Bank of Australia raised the official cash rate to 7 percent in March 2008; a twelve year high. Banks have responded by increasing lending rates. The National Australian Bank wared that it could further lift home loan rate independently of the Reserve Bank, and the other banks are likely to follow suit. Recent interest rate cuts by the Reserve Bank of Australia only serve to flag the tough economics times ahead. Interest rates, poor service and bank fess have combined to tarnish the image of banks. A recent international report of bank customer satisfaction units put Australia at thirteenth place out of seventeen countries that were surveyed. In addition, Fujitsu Consulting reported that 80% of 26000 customers surveyed were prepared to change their financial service provider, with poor service being the major frustration. Among the reasons given for changing were better interest rates (26%), better service (23%), better products (19%) and loyalty rewards (17%). An earlier survey (2005) by CHOICE magazine had found that for bank accounts, credit unions had the highest customer satisfaction at 84%, followed closely by building societies at 83%. Other banks rated at 74%, while the big four came in at 56%. Similarly, for credit cards, credit societies rate at 83% satisfaction while the big four came in at 65%. Additionally, 95% of credit union customers were satisfied with their home loans, compared with only 85% for the big four banks. Only one in four customers of the big four was satisfied with all three products. cleative - In recent years the banking industry has faced many challenges and opportunities. In 2004 Australia's largest bank, the National Australia Bank, was shaken by losses of hundreds of millions of dollars in foreign currency trading. Throughout the 1990s, the four biggest Australian banks the National Australia Bank, Westpac, the Commonwealth Bank of Australia and the ANZ - all struggled to maintain profit levels. In fact, the gross income as a ratio of assets for Australian bank fell from 4.2% in 1992 to 2.9% in 2001. Nevertheless, banks have made record profits over the last few years, mainly due to business lending and wealth management. National Australian Bank recorded a profit of $4.5 billion for the financial year (ending September 2008), a fall of 0.9% on the previous year. Similarly, Westpac reported an end-of-year profit of $3.72 billion of the 2007 financial year (up 6% from the previous year), the ANZ reported a profit of $3.32 billon (down 21% from the previous year), the Commonwealth Bank reported an annual profit of $4.8 billion (to July 2008, up 7% from the previous year). However, the recent subprime mortgage crisis in the United States has affected the Australian markets. In March 2008, the banking sector subindex slumped 39% from the November 2007 highs, compared to a 25 percent fall in the benchmark S&P/ASX 200. The problems are compounded by rising interest rates in Australia and the credit squeeze abroad, combining to push up the funding cots for banks. The Reserve Bank of Australia raised the official cash rate to 7 percent in March 2008; a twelve year high. Banks have responded by increasing lending rates. The National Australian Bank wared that it could further lift home loan rate independently of the Reserve Bank, and the other banks are likely to follow suit. Recent interest rate cuts by the Reserve Bank of Australia only serve to flag the tough economics times ahead. Interest rates, poor service and bank fess have combined to tarnish the image of banks. A recent international report of bank customer satisfaction units put Australia at thirteenth place out of seventeen countries that were surveyed. In addition, Fujitsu Consulting reported that 80% of 26000 customers surveyed were prepared to change their financial service provider, with poor service being the major frustration. Among the reasons given for changing were better interest rates (26%), better service (23%), better products (19%) and loyalty rewards (17%). An earlier survey (2005) by CHOICE magazine had found that for bank accounts, credit unions had the highest customer satisfaction at 84%, followed closely by building societies at 83%. Other banks rated at 74%, while the big four came in at 56%. Similarly, for credit cards, credit societies rate at 83% satisfaction while the big four came in at 65%. Additionally, 95% of credit union customers were satisfied with their home loans, compared with only 85% for the big four banks. Only one in four customers of the big four was satisfied with all three products. cleative