Question

# The interest rates paid by 30 financial institutions on a certain day for money market deposit...

The interest rates paid by 30 financial institutions on a certain day for money market deposit accounts are shown in the accompanying table.

 Rate % Institutions 2 2.25 2.55 2.56 2.58 2.6 2.65 2.85 2 6 9 1 1 7 2 2

Let the random variable X denote the interest rate per year paid by a randomly chosen financial institution on its money market deposit accounts.

(a) Find the probability distribution associated with these data. (Round your answers to three decimal places.)

     Rate % 2 2.25 2.55 2.56 2.58 2.60 2.65 2.85

(b) Find the probability that the interest rate paid by a financial institution chosen at random is less than 2.56% per year. (Round your answer to three decimal places.)

a)dividing each frequency with n=30 :

 Rate % P(X=x) 2 0.067 2.25 0.200 2.55 0.300 2.56 0.033 2.58 0.033 2.60 0.233 2.65 0.067 2.85 0.067

b) probability that the interest rate paid by a financial institution chosen at random is less than 2.56% per year =(9+6+2)*100/30=0.567