Question

FREQUENCY TABLES, FREQUENCY DISTRIBUTIONS, AND GRAPHIC PRESENTATION 47 40. FILE Midland National Bank selected a sample of 40 student checking accounts. Below are their end-of-the-month balances. $404 $74 $234 $149 $279 $215 $123 $55 $43 $321 87 234 68 489 57 185 141 758 72 863 703 125 350 440 37 252 27 521 302 127 968 712 503 327 489 608 358 303 203 425 a. Tally the data into a frequency distribution using $100 as a class interval and $0 as the starting point. b. Draw a cumulative frequency polygon. c. The bank considers any student with an ending balance of $400 or more a "pre- ferred customer." Estimate the percentage of preferred customers. d. The bank is also considering a service charge to the lowest 10 % of the ending bal- ances. What would you recommend as the cutoff point between those who have to pay a service charge and those who do not?

Answer 1

Answer: Given data -> Midland National Bank Selected acSample Of 40 Students checking accounts. Below are their end-of-the Month balances. 4404 $43 72 $324 863 103 $14 $234 | $149 $279 $215 $123 | $5 834 6 8 489_ 57 185 140 158 125 1350 440 37 852 ar Sat 12 503 1489 327 608 | 358 968 To find :- 1. Tally the data into a frequency distribution using $100 as a class interval and $0 as the Starting point di Asaw a cumulative frequency polygon. 3. Estimate the peacentage of preferred customers. 4. The bank is also considering a service change to the lowest 10% of the ending balances

(@j :- Kale need to assemble the given data. în ascending order 0,27,37, 43,55, 57, 68, 72, 74, 81,123,125, 127, 141,149,185, 803,215, 834,234,282,279,302,303,321,327,350,352,358, 404, 425,440, 489,489,503, 521, 608, 703, 712, 758, 863,968 In the Of '100' 0 - 99 100 - 199 200-299 300 - 399 400-499 500 - 599 600-699 700 - 799 800-899 900-999 ascending values in between the dass is internal. 0 to 992 = 27,37, u3,55,5768,72, 74, 87 = 9 = 123, 125, 127, 141,149,185 = 6 - 203, 215, 234,234, 25, 279 = 302, 303, 321,327,350, 359,358 = 404,425,440,489, 489 = 503,521 = 608 - 403,712,758 - 863 = 968 Frequency

Frequency Account balances 0-99 100-199 200-299 300 - 399 400- 499 500 - 599 Sample data is to students for 600 - 699 700 - 799 800- 899 900-999 RELATIVE FREQUENCY Here, the given data the Checking accounts 9140 = 0.83 6/40 =0:15 6840 =0:15 7140 -0.17 = 0.13 = 0.05 1/40 =0.03 3/40 = 0.08 1140 0:03 1/40 = 0.03 5140 2140

Cumulative Frequency at6 = 15 15+6 =21 21 +7 = 28 28+5 = 33 334 - 35 35+1 = 36 36+3 =39 39+1 = 40 Cumulative Retative frequency:- 0.23 0.23+0:15 -0.38 0:38 +0.15 0.53 0:53+ 0.15 = 0.68 0.68 +043 = 0.85 0.85 +0.15 = 0.85 0.88 +0.63 =0.95 0.95+0.03 -0.98 0.98+1 = 1

O DRAW , CUMIU LATIVE FREQUENCY POLY GON:- go So if i es pot : 0-90 90-200-300 200 o 600 7oo goo 900 199 299 300 aga sag 699 799 899 999 192 Balance in accounts (ind) ③ Given, Student with an Ending balance of $400. (09) more 513 Student 1.6 - 407100 % = 32.50% % Of Drve feared customers = 32-50

D Giren, Service charge to the lowest 10% of Ending balance are 40% 10% = 4 students and also we have $27, 37, 43, 455 in their account So the cutoff point is $56 It means, means, The pay Student with the balance upto Ass will the Service charge.