The file High Desert Banking contains information regarding consumer, real estate, and small commercial loans made last year by the bank. Use your computer software to do the following:
a. Construct a frequency histogram using eight classes for dollar value of loans made last year. Does the population distribution appear to be normally distributed?
b. Compute the population mean for all loans made last year.
c. Compute the population standard deviation for all loans made last year.
d. Select a simple random sample of 36 loans. Compute the sample mean. By how much does the sample mean differ from the population mean? Use the Central Limit Theorem to determine the probability that you would have a sample mean this small or smaller and the probability that you would have a sample mean this large or larger.