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A major credit card company has determined that its customers charge an average of $280 per month on their accounts with a standard deviation of $20. (You may need to use the appropriate appendix table or technology to answer this question. Round your answers to two decimal places.) (a) What percentage of the customers charges more than $275 per month? 59.87 % (b) What percentage of the customers charges less than $241 per month? % (c) What percentage of the customers charges between $247 and $303.60 per month? %

User Kenny Mann
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Final answer:

To calculate the requested percentages, Z-scores are determined for each amount and the corresponding probabilities are obtained from a standard normal distribution table. For part (b), a Z-score of -1.95 yields about 2.52%. For part (c), Z-scores of -1.65 and 1.18 yield a range with about 73.94% of customers charging between those amounts.

Step-by-step explanation:

The question involves calculating probabilities for a normally distributed variable, which in this case is the amount charged per month on a credit card account. Since this is a typical question of a statistics course in college, we will use the Z-score formula to convert the dollar amounts into standard scores and then find the corresponding percentages.

Let's use the following information: the average amount charged is $280 per month, with a standard deviation of $20.

For part (b), to find the percentage of customers who charge less than $241 per month, first calculate the Z-score:

Z = (X - μ) / σ = ($241 - $280) / $20 = -1.95

Looking this Z-score up in a standard normal distribution table, or using statistical software, gives us a percentage. The exact percentage will vary slightly based on the source, but it should be approximately:

2.52%

For part (c), calculate the Z-scores for both $247 and $303.60:

Z₁ = ($247 - $280) / $20 = -1.65
Z₂ = ($303.60 - $280) / $20 = 1.18

Look up these Z-scores in the standard normal distribution table or calculate using technology to get two percentages and subtract the smaller from the larger to find the percentage of customers charging between $247 and $303.60.

The answer will be approximately:

73.94%

User Mascoj
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