The First Chicago Bank is reviewing its service charges and interest-paying policies on checking accounts. The...
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 $ 750 and the standard deviation is $100.
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?
(Use 2 decimal places in your answer. 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 5% of its checking account customers, what is the minimum daily balance on which it should be willing to pay interest? (Round your answer to the nearest dollar)
Homework Answers
Add Answer to:
The First Chicago Bank is reviewing its service charges and
interest-paying policies on checking accounts. The...
The First Chicago Bank is reviewing its service charges and interest-paying policies on checking accounts. The...
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 $750 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....
17. The Barminster Bank is reviewing its service charges and interest paying policies on current accounts....
17. The Barminster Bank is reviewing its service charges and interest paying policies on current accounts. The bank has found that the average daily balance is normally distributed with a mean of £580 and a standard deviation of £140. a. What percentage of current account customers carry average balances in excess of £800? b. What percentage of current account customers carry average daily balances between £300 and £700? c. The bank is considering paying interest to customers carrying average daily...
1. A bank has kept records of the checking balances of its 4000 customers and determined...
1. A bank has kept records of the checking balances of its 4000 customers and determined that the average daily balance of its customers is $300 with a standard deviation of $48. A random sample of 144 checking accounts is selected. Please answer the following questions. (a) What is the probability that the sample mean will be more than $309? (b) What is the probability that the sample mean will be between $293 and $307? (c) Suppose the number of...
-0.07 0.07 z 2. A bank has kept records of the checking balances of its customers...
-0.07 0.07 z 2. A bank has kept records of the checking balances of its customers and determined that the average daily balance of its customers is $300 with a standard deviation of $48, and is a normally distributed population. A random sample of 144 checking accounts is selected a) What is the probability that the sample mean will be at least $306.60? b) What is the probability that the sample mean will be less than $308? c) What is...
Problem 4.33 Activity-Based Costing: Service Firm
Glencoe First National Bank operated for years under the assumption that profitability can be increased by increasing dollar volumes. Historically, First National's efforts were directed toward increasing total dollars of sales and total dollars of account balances. In recent years, however, First National's profits have been eroding. Increased competition, particularly from savings and loan institutions, was the cause of the difficulties. As key managers discussed the bank's problems, it became apparent that they had no idea what their products were...
Cornerstone Exercise 4-20 Bank Reconciliation Tiny Corp. prepares monthly bank reconciliations of its checking account balance....
Cornerstone Exercise 4-20 Bank Reconciliation Tiny Corp. prepares monthly bank reconciliations of its checking account balance. The bank statement indicated the following: Balance, beginning of the month $15,640 Service charge for October Interest earned during October 80 NSF check from Green Corp. (deposited by Tiny) for goods 615 purchased on account Note ($2,500) and interest ($75) collected for Tiny from a 2,575 customer An analysis of canceled checks and deposits and the records of Tiny revealed the following items: Checking...
The LeVitre and Swezey Credit Union maintains separate bank accounts for each of its 20,000 custo...
The LeVitre and Swezey Credit Union maintains separate bank accounts for each of its 20,000 customers. Three major files are the customer master file, the transaction file of deposits and withdrawal information, and a monthly statement file that shows a customer’s transaction history for the previous month. The following lists the bank’s most important activities during a representative month: Customers make deposits and withdrawals. Employers make automatic deposits on behalf of selected employees. The bank updates its master file daily...
hey Required: 1. Prepare a bank reconciliation for Oscar's checking account on February 28, 2021. (Amounts...
hey
Required: 1. Prepare a bank reconciliation for Oscar's checking account on February 28, 2021. (Amounts to be deducted should be indicated with a minus sign. Total entries to the same account together when entering in the bank reconciliation.) Answer is not complete. OSCAR'S RED CARPET STORE Bank Reconciliation February 28, 2021 Bank's Cash Balance Company's Cash Balance Per bank statement $ 11,770 Per general ledger Deposits outstanding 1,500 Company error Checks outstanding 2,000 % $ 7,150 (650) Bank balance...
To increase its share of the checking account market, Belltown National Bank in Seattle took two...
To increase its share of the checking account market, Belltown National Bank in Seattle took two actions: (1) established a customer call center to respond to customer inquiries about account balances, checks cleared, fees charged, etc., and (2) paid year-end bonuses to branch managers who met their branch’s target increase in the number of customers. While 80% of the branch managers met the target increase in the number of customers, Belltown National’s profits continued to decline. Roger Welton, the CEO,...
C++ Banks offer various types of accounts, such as savings, checking, certificate of deposits, and money...
C++
Banks offer various types of accounts, such as savings,
checking, certificate of deposits, and money market, to attract
customers as well as meet their specific needs. Two of the most
commonly used accounts are savings and checking. Each of these
accounts has various options. For example, you may have a savings
account that requires no minimum balance but has a lower interest
rate. Similarly, you may have a checking account that limits the
number of checks you may write....
17. The Barminster Bank is reviewing its service charges and interest paying policies on current accounts. The bank has found that the average daily balance is normally distributed with a mean of £580 and a standard deviation of £140. a. What percentage of current account customers carry average balances in excess of £800? b. What percentage of current account customers carry average daily balances between £300 and £700? c. The bank is considering paying interest to customers carrying average daily...
-0.07 0.07 z 2. A bank has kept records of the checking balances of its customers and determined that the average daily balance of its customers is $300 with a standard deviation of $48, and is a normally distributed population. A random sample of 144 checking accounts is selected a) What is the probability that the sample mean will be at least $306.60? b) What is the probability that the sample mean will be less than $308? c) What is...
Cornerstone Exercise 4-20 Bank Reconciliation Tiny Corp. prepares monthly bank reconciliations of its checking account balance. The bank statement indicated the following: Balance, beginning of the month $15,640 Service charge for October Interest earned during October 80 NSF check from Green Corp. (deposited by Tiny) for goods 615 purchased on account Note ($2,500) and interest ($75) collected for Tiny from a 2,575 customer An analysis of canceled checks and deposits and the records of Tiny revealed the following items: Checking...
hey
Required: 1. Prepare a bank reconciliation for Oscar's checking account on February 28, 2021. (Amounts to be deducted should be indicated with a minus sign. Total entries to the same account together when entering in the bank reconciliation.) Answer is not complete. OSCAR'S RED CARPET STORE Bank Reconciliation February 28, 2021 Bank's Cash Balance Company's Cash Balance Per bank statement $ 11,770 Per general ledger Deposits outstanding 1,500 Company error Checks outstanding 2,000 % $ 7,150 (650) Bank balance...
C++
Banks offer various types of accounts, such as savings,
checking, certificate of deposits, and money market, to attract
customers as well as meet their specific needs. Two of the most
commonly used accounts are savings and checking. Each of these
accounts has various options. For example, you may have a savings
account that requires no minimum balance but has a lower interest
rate. Similarly, you may have a checking account that limits the
number of checks you may write....
Most questions answered within 3 hours.
-
An entomologist discovers a dung beetle rolling a ball of dung
along the ground, and decides...
asked 1 hour ago -
Humans have used horses for transportation for millions of
years. Therefore, they will use horses for...
asked 3 hours ago -
The following are the Jensen Corporation's unit costs of making
and selling an item at a...
asked 3 hours ago -
Does direct Medicare reimbursement of Advanced practice nurses
increase access to their services?
asked 4 hours ago -
List and explain why a company would choose to use a
published
compensation survey vs. creating...
asked 4 hours ago -
A discrete random variable X can take values from 1 to 10. Find
the variance of...
asked 4 hours ago -
The primary financial goal of a corporation is to maximize:
shareholders wealth.
earnings per share.
stock...
asked 4 hours ago -
determine whether the vectors u=(1,2,3,), v=(-2,1,0) and
w=(1,0,1) are linearly dependent or independent.
asked 5 hours ago -
python
Define a function called print_values which takes a dictionary
object as a parameter. The function...
asked 6 hours ago -
In Chapter 1 you created a program named Triangle in
which you displayed a seven-line triangle...
asked 5 hours ago -
Research question: What are the differences between separately
stated and non separately stated transactions in an...
asked 6 hours ago -
By using Arduino write a code that connects two LEDs to two
push-buttons. Each button controls...
asked 7 hours ago