Question

At the Midlothian Independent Bank, a study shows that the mean ATM transaction takes 74 seconds, the median 63 seconds, and the mode 51 seconds. (a) Check the appropriate choice of distribution based on the statistics given. The distribution should be skewed to the left because the mean is greater than the median. The distribution should be skewed to the right because the standard deviation is greater than the mean. The distribution should be skewed to the right because the mean is greater than the median. The distribution should be skewed to the left because the variance is greater than the mean. (b) Select the factor that might cause the distribution to be like this. Most ATM transactions will tend to be high in duration, but a few will be of longer duration. Most ATM transactions will tend to be low in duration, but a few will be of lower duration.

Answer 1

Answer:

a) The distribution should be skewed to the right because the mean is greater than the median.

b) Most ATM transactions will tend to be low in duration, but a few will be of lower duration.

Step-by-step explanation:

Given:

Mean = 74

Median = 63

Mode = 51

a) We can see that the mean is greater than the median, and the median is greater than the mode. It can be written in this sequence : Mean > Median > Mode.

Therefore, the distribution should be skewed to the right because the mean is greater than the median.

b) Since the mode is less than mean, the duration of view will be longer but there wil be a low value of observation.

Therefore, the factor thay might cause the distribution to be like this is that most ATM transactions will tend to be low in duration, but a few will be of lower duration.