The Webster National Bank is reviewing its service charges and interest-paying policies on checking accounts. The average
Question:
The Webster National Bank is reviewing its service charges and interest-paying policies on checking accounts. The average daily balance on personal checking accounts is $550, with a standard deviation of $150. In addition, the average daily balances are normally distributed.
a. What percentage of personal checking account customers carry average daily balances in excess of $800?
b. What percentage carry average daily balances below $200?
c. What percentage carry average daily balances between $300 and $700?
d. The bank is considering paying interest to customers carrying average daily balances in excess of a certain amount. If the bank does not want to pay interest to more than 5% of its customers, what is the minimum average daily balance it should be willing to pay interest on?
Step by Step Answer:
Quantitative Methods For Business
ISBN: 148
11th Edition
Authors: David Anderson, Dennis Sweeney, Thomas Williams, Jeffrey Cam