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# The First Chicago Bank is reviewing its service charges and interest-paying policies on checking accounts.

The First Chicago Bank is reviewing its service charges and interest-paying policies on checking accounts. The daily balance of a checking account is defined to be the balance in the checking account at 2:00pm.
The bank has found that for all personal checking accounts the mean of all the daily balances is \$800 and the standard deviation is \$150.
In addition, the distribution of personal checking account daily balances can be approximated very well with a normal model.

Question 1. What percentage of the bank's customers carry daily balances between \$700 and \$1,000?

=65.64

% (Note that the answer is requested as a percent, that is, a value between 0 and 100).

Question 2.The bank is considering paying interest to customers carrying daily checking account balances in excess of a certain amount. If the bank does not want to pay interest to more than 6% of its checking account customers, what is the minimum daily balance on which it should be willing to pay interest?

This is the solution. If... View the full answer

Solution: 1
Mean = \$800, sd = \$150
Z score for \$700 =
P value = 0.25143
Z score for \$ 1000 =
P value = .90824
1 – 0.90824 = 0.09176
0.09176 + 0.25143 =0.34319
Hence percentage of customers =...

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