Checking Accounts a Bank Has Determined That the Monthly Balances of the Balances

question 40

Short Answer

Checking Accounts
A bank has determined that the monthly balances of the checking accounts of its customers are normally distributed with an average balance of $1,200 and a standard deviation of $250. ​ ​
-{Checking Accounts Narrative} What proportion of customers have monthly balances between $950 and $1,075?

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Definitions:

Lower Control Limit

In quality control, the lower threshold below which a process is considered out of control and corrective action may be necessary.

Defective Units

Items in a batch of products that fail to meet the required quality standards.

Type I Error

The inaccurate dismissal of a real null hypothesis, also labeled a "false positive."

Statistical Process Control

Statistical Process Control is a method of monitoring and controlling a process using statistical methods to ensure it operates at its fullest potential.