Credit card companies frequently use statistics to monitor their customerââ?¬â?¢s accounts for fraudulent activities. If any ââ?¬Å"unusualââ?¬Â? activity is noticed, the customer is contacted to make sure that the credit card has not been compromised. Listed below are the daily charges on a specific customerââ?¬â?¢s credit card during one month (any day when the card was not used is excluded from the database).
143, 166, 113, 188, 133, 90, 89, 98, 95, 112, 111, 79, 212, 20, 112, 70, 174, 68, 101, 46
b) In a simplistic example, suppose that your credit card company defines ââ?¬Å"unusual activityââ?¬Â? as a daily charge that is greater than 98% of all charges on the card. Assuming that a personââ?¬â?¢s credit card charges approximately follow a Normal Distribution, accurately determine the charge amount that must be exceeded before the customer is contacted.
c) How many of the charges, if any, would have been flagged as suspicious activity?© BrainMass Inc. brainmass.com October 17, 2018, 3:48 am ad1c9bdddf
Since you are asking for part b), I will assume that you know how to do part a).
The mean and sample standard deviation are mean = 111 and std. dev. = 46.65.
If you look up on a normal ...
Determine the mean and sample standard deviation for a credit card company
Test to determine if the mean of all account balances is significantly different from $1,000.
A sample of 64 account balances from a credit card company showed an average balance of $1,040. A previously determined population standard deviation is $200. Test to determine if the mean of all account balances is significantly different from $1,000. Use a 0.05 level of significance. (may use traditional or p-value method)View Full Posting Details