The Saskatoon Credit Union selected a sample of 40 student chequing accounts. Be

Question

The Saskatoon Credit Union selected a sample of 40 student chequing accounts. Below are their end-of the-month balances, in dollars:

$ 514 640 978 543 156 156 214 137 145 842 771 362 849 860 879 599 205 295 786 157 632 869 685 369 255 283 623 213 90 452 341 653 530 180 663 589 425 571 60 769

a. Tally the data into a frequency distribution using $100 as a class interval and $0 as the starting point.

Balance Frequency Cumulative Frequency 0 to under 100 ,100 to under 200 ,200 to under 300 300 to under 400 400 to under 500 500 to under 600 600 to under 700 700 to under 800 800 to under 900 900 to under 1000 Total,,,,,

b. The bank considers any student with an ending balance of $400 or more a "preferred customer." Estimate the percentage of preferred customers. (Round up the answer to the nearest whole percentage.)

Percentage             %

c. The bank is also considering a service charge to the lowest 10% of the ending balances. What would you recommend as the cutoff point between those who have to pay a service charge and those who do not?

Explanation / Answer

(a)

(b) let X is balance then

number of person less than 400 is 17

so number of person greater than 400 is 40-17=23 and

required %=100*23/40=57.5

(c) here we should find the 10th percentile

and arranging the data in ascending order and find the 10th percentile i,e, next to (40*10/100)th=5th observation and it is 156. so the cutoff point is 156.

60,90,137,145,156,156,157,180..................879,978

class frequency(tally) frequency(f) cumulative frequency(cf) 0-100 || 2 2 100-200 ||||| 6 8 200-300 ||||| 6 14 300-400 ||| 3 17 400-500 || 2 19 500-600 ||||| 6 25 600-700 ||||| 6 31 700-800 ||| 3 34 800-900 |||| 5 39 900-1000 | 1 40

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