Assume the credit card balances of younger college educated employed persons are normally distributed with a mean of $ 6,358 and a standard deviation of $1,907 – assume these are population values.What is the probability of a randomly selected credit card holder has a credit card balance less than $5750? Use the standard normal table for this, using the population mean and standard deviation.Now you randomly select 81 credit card holders. What is the probability that their mean credit card balance is less than $5750? Use the standard normal table for this, but this time use the population mean and standard error (standard deviation/SQRT(81)).

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Answered: Assume the credit card balances of…

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018

18th Edition

ISBN:9780079039897

Author:Carter

Publisher:Carter

Chapter10: Statistics

Section10.4: Distributions Of Data

Problem 19PFA

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Assume the credit card balances of younger college educated employed persons are normally distributed with a mean of $ 6,358 and a standard deviation of $1,907 – assume these are population values.

1. What is the probability of a randomly selected credit card holder has a credit card balance less than $5750? Use the standard normal table for this, using the population mean and standard deviation.
2. Now you randomly select 81 credit card holders. What is the probability that their mean credit card balance is less than $5750? Use the standard normal table for this, but this time use the population mean and standard error (standard deviation/SQRT(81)).

Features Features Normal distribution is characterized by two parameters, mean (µ) and standard deviation (σ). When graphed, the mean represents the center of the bell curve and the graph is perfectly symmetric about the center. The mean, median, and mode are all equal for a normal distribution. The standard deviation measures the data's spread from the center. The higher the standard deviation, the more the data is spread out and the flatter the bell curve looks. Variance is another commonly used measure of the spread of the distribution and is equal to the square of the standard deviation.

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