Question

A regional U.S. commercial bank issues both Visa and MasterCard credit cards. As a part of its annual review of the profitability of each type of credit card, the bank randomly samples 24 customers to measure the average quarterly charges per card. It has completed its analysis of the Visa card accounts and is now focused on its MasterCard customers. A random sample of 24 MasterCard accounts shows the following spending per account (rounded to the nearest dollar):

$2,869

$2,549

$2,230

$1,994

$3,770

$3,267

$2,178

$2,768

$2,854

$3,013

$3,032

$3,853

$2,750

$2,707

$3,485

$2,064

$2,574

$2,794

$2,679

$3,244

$2,972

$1,189

$2,010

$2,738

a) If the bank is interested in developing a 95% confidence interval estimate of mean quarterly spending, what distribution will be used to determine the critical value?

b) Construct the 95% confidence interval estimate for the population mean of quarterly MasterCard spending for the bank’s customers.

Answer #1

a) Here we have given the sample of 24 observations.

From the given data we can calculate sample standard deviation s, here population standard deviation is not given.

Hence we can use t distribution here.

b)

Hope this will help you. Thank you :)

The Bank of Connecticut issues Visa and MasterCard credit cards.
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by the Bank of Connecticut have a mean of $850 and a standard
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follow a normal distribution.
A. What is the probability that a randomly selected Visa card
issued by this bank has a balance between $1000 and $1410 ?
Round your answer to three decimal...

The Bank of Connecticut issues Visa and MasterCard credit cards.
It is estimated that the balances on all Visa credit cards issued
by the Bank of Connecticut have a mean of $830 and a standard
deviation of $275. Assume that the balances on all these Visa cards
follow a normal distribution.
a. What is the probability that a randomly
selected Visa card issued by this bank has a balance between $950
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Round your answer to three decimal places....

Bank of America's Consumer Spending Survey collected data on
annual credit card charges in seven different categories of
expenditures: transportation, groceries, dining out, household
expenses, home furnishings, apparel, and entertainment (U.S.
Airways Attache, December 2003). Using data from a sample of
42 credit card accounts, assume that each account was used to
identify the annual credit card charges for groceries (population
1) and the annual credit card charges for dining out (population
2). Using the difference data, the sample mean...

Bank of America's Consumer Spending Survey collected data on
annual credit card charges in seven different categories of
expenditures: transportation, groceries, dining out, household
expenses, home furnishings, apparel, and entertainment (U.S.
Airways Attache, December 2003). Using data from a sample of
42 credit card accounts, assume that each account was used to
identify the annual credit card charges for groceries (population
1) and the annual credit card charges for dining out (population
2). Using the difference data, the sample mean...

Bank of America's Consumer Spending Survey collected data on
annual credit card charges in seven different categories of
expenditures: transportation, groceries, dining out, household
expenses, home furnishings, apparel, and entertainment. Using data
from a sample of 42 credit card accounts, assume that each account
was used to identify the annual credit card charges for groceries
(population 1) and the annual credit card charges for dining out
(population 2). Using the difference data, the sample mean
difference was d=$850, and the...

Bank of America's
Consumer Spending Survey collected data on annual credit card
charges in seven different categories of expenditures:
transportation, groceries, dining out, household expenses, home
furnishings, apparel, and entertainment (U.S. Airways
Attache, December 2003). Using data from a sample of 42 credit
card accounts, assume that each account was used to identify the
annual credit card charges for groceries (population 1) and the
annual credit card charges for dining out (population 2). Using the
difference data, the sample mean...

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