# Probability calculation using Z score

The Webster National Bank is reviewing its service charge and interest-paying

policies on checking accounts. The bank has found that the average daily balance on

personal checking accounts is $550, with a standard deviation of

$150. In addition,

the average daily balances have been found to be normally distributed (Gaussian).

(a) What percentage of personal checking account customers carry average daily

balances in excess of $800?

(b) What percentage of the banks customers carries average daily balances below

of $200?

(c) What percentage of the banks customers carries average daily balances

between $300 and $700?

(d) The bank is considering paying interest to customers carrying average daily

balances in excess of a certain amount. If the bank does not want to pay

interest to more than 5% of its customers, what is the minimum average daily

balance it should be willing to pay interest on?

https://brainmass.com/statistics/z-test/probability-calculation-using-z-score-409524

#### Solution Summary

Step by step method for computing probability calculation using Z score is given in the answer.

Statistics: Z-score, sample standard deviation, standardized score

1. For a population with µ=50 and σ=10,

A. What is the z-score for X=55, X=60, X=75, X=45, X=30 and X=35?

B. Find the X value that corresponds to each of the following z-scores, z=1.00, z=0.80, z=1.50, z= -0.50, z= -0.30 and z= -1.50.

2. Find the z-score corresponding to a score of X=60 for each of the following distributions.

A. µ=50 and σ=10

B. µ=50 and σ=5

C. µ=70 and σ=20

D. µ=70 and σ=5

3. For a sample with a mean of M=85, a score of X=90 corresponds to z=0.50. What is the sample standard deviation?

4. In a population of exam scores, a score of X=88 corresponds to z=+2.00 and a score of X=79 corresponds to z= -1.00. What is the means for the population? What is the standard deviation for the population?

5. A distribution with a means of µ=38 and a standard deviation of σ=20 is being transformed into a standardized distribution with µ=50 and σ=10. Find the new, standardized score for each of the following values from the original population.

A. X=48

B. X=40

C. X=30

D. X=18

PLEASE SHOW STEP BY STEP HOW YOU SOLVE THESE PROBLEMS.

View Full Posting Details