Answer:
The change in checking deposit is equal to $22,727.27.
Explanation:
An amount of $2,500 is deposited in a checking account.
The required reserve ratio is 0.11 or 11%.
A part of this deposit will go to the required reserve and the rest will be added in the checking deposit of the bank.
The change in the checking deposits will be
= amount deposited
=
= $22,727.27
Answer:
a) 0.1728
b) 0.09183
c) 0.7354
d) $ 222.25
Explanation:
Given
mean = = $367
Standard deviation = =$88
Cost of automobile repair is normally distributed.
a) We have to find P( x > 450 )
P( x > 450 ) = 1 - P( x <= 450 )
Using excel function, P( x <= x ) = NORMDIST (x, ,
, 1 )
P( x > 450 ) = 1 - NORMDIST( 450 , 367, 88, 1 )
= 1 - 0.8272 = 0.1728
P( x > 450 ) = 0.1728
b) P( x < 250 ) = NORMDIST( 250 , 367, 88, 1 ) = 0.09183
P( x < 250 ) = 0.09183
c) P( 250 < x < 450 ) = P( x <450 ) - P( x < 250 )
P( x <450 ) = NORMDIST( 450 , 367, 88, 1 ) = 0.8272
P( x < 250 ) = NORMDIST( 250 , 367, 88, 1 ) = 0.09183
P( 250 < x < 450 ) = 0.8272 - 0.09183 = 0.7354
P( 250 < x < 450 ) = 0.7354
d) We have P( X < a ) = 0.05
We have to find a.
Using Excel, = NORMINV ( Probability, ,
)
a = NORMINV ( 0.05 , 367, 88 ) = 222.2529
Cost = $ 222.25