The Federal Deposit Insurance Corporation (FDIC) insures deposits in banks and thrift institutions for up to $250,000. Before the banking crisis of late 2008, there were 8,885 FDIC–insured institutions, with deposits of $6,826,804,000,000; there were 7,436 in late 2011 with deposits of 7,966,700,000,000.
a. Calculate the average deposits per bank for FDIC–insured institutions during both time periods.
b. Describe the relationship between the two averages calculated in part a. Can you provide a reason for the difference?
c. Would the two averages be considered to be parameters or statistics? Explain.