Answered: multinational bank issuing Master Card…

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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Question

A multinational bank issuing Master Card is monitoring the use of credit card account holders in the context of their spending habits. A market survey shows that the average monthly spending of its regular card users is normally distributed with mean Rs. 2800 and standard deviation Rs. 900. The customer are classified into four categories according to pattern of spending.

i.Category 1 spends less than Rs. 2000

ii.Category 2 spends Rs. 2000 or more but less than Rs. 3000

iii.Category 3 spends Rs. 3000 or more but less than Rs. 4000

iv.Category 4 spends Rs. 4000 or more

v.What proportion of customers would you expect to fall into each category?

Definition Definition Measure of central tendency that is the average of a given data set. The mean value is evaluated as the quotient of the sum of all observations by the sample size. The mean, in contrast to a median, is affected by extreme values. Very large or very small values can distract the mean from the center of the data. Arithmetic mean: The most common type of mean is the arithmetic mean. It is evaluated using the formula: μ = 1 N ∑ i = 1 N x i Other types of means are the geometric mean, logarithmic mean, and harmonic mean. Geometric mean: The nth root of the product of n observations from a data set is defined as the geometric mean of the set: G = x 1 x 2 ... x n n Logarithmic mean: The difference of the natural logarithms of the two numbers, divided by the difference between the numbers is the logarithmic mean of the two numbers. The logarithmic mean is used particularly in heat transfer and mass transfer. ln x 2 − ln x 1 x 2 − x 1 Harmonic mean: The inverse of the arithmetic mean of the inverses of all the numbers in a data set is the harmonic mean of the data. 1 1 x 1 + 1 x 2 + ...

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