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Century National Bank

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Century National Bank

Refer to the Century National Bank data (attached).

Is it reasonable that the distribution of checking account balances approximates a normal probability distribution? Determine the mean and the standard deviation for the sample of 60 customers. Compare the actual distribution with the theoretical distribution. Cite some specific examples and comment on your findings.

Divide the account balances into three groups, of about 20 each, with the smallest third of the balances in the first group, the middle third in the second group, and those with the largest balances in the third group. Next, develop a table that shows the number in each of the categories of the account balances by branch. Does it appear that account balances are related to the branch? Cite some examples and prepare a short written report of your findings in Microsoft Word.

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Solution Preview

1) To find out the mean and standard deviation for the variable x1, we could run "descriptive statistics" under "data analysis" in excel. Based on the output on the left, we could see that mean is 1499.867, standard deviation is 596.9049. For the normal distribution, median should be equal or very close to mean. However, for this data set, the median is 1604.5, quite different from mean of 1499.867. Therefore, this data set does not follow ...

Solution Summary

The expert examines Century National Bank distribution accounts.