Auditors at a bank randomly sample 100 withdrawal transactions made at ATM machi

Question

Auditors at a bank randomly sample 100 withdrawal transactions made at ATM machines each day and use video records to verify that authorized users of the accounts made the transactions. The system records the amounts withdrawn. The average withdrawal is typically $50 with SD $40. Deposits are handled separately.

Mark the statement below as True or False. If you believe that the statement is false, briefly say why you think it is false.

A histogram of the average withdrawal amounts made daily over the span of a month should cluster around $50.

Choose the correct answer below.

A.

True

B.

False, a histogram of the average withdrawal amounts made daily over the span of a month should cluster around $40.

C.

False, a histogram of the daily standard deviations of the withdrawal amounts over the span of a month should cluster around $50.

Explanation / Answer

Correct option:

A

True

EXPLANATION:

A histogram of the average withdrawal amounts made daily over the span of a month should cluster around $50.

Given:
Mean = $50.

So, the average daily withdrawals should cluster around mean = $50.

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