Suppose ARB Bank is reviewing its service charges and interest payment policies on current accounts. Suppose further that ARB has found that the avcrage daily bulance on personal current accounts is GHl¢350.00, with a standard deviation of GH¢ 160.00. In addition, the average daily balances have been found to follow a normal distribution; (i) What percentage of customers carrics a balance of GHe 100 or lower? (ii) What percentage of customers carries a balance of Gll¢500 or lower?
Inverse Normal Distribution
The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.
Mean, Median, Mode
It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.
Z-Scores
A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.
Step by step
Solved in 3 steps with 2 images
