HA1011 Tutorial Questions On Applied Quantitative Methods - Tutoring 2

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Week 8 – Question 2 (10 marks)

An analysis of the amount of interest paid by ABX banks’ visa card holders reveals that the amount is normally distributed with a mean of $27 and a standard deviation of $7.

  1. What proportion of the Bank’s Visa card holders pay more than $30 in interest? (2.5 marks)
  2. What proportion of the Bank’s Visa card holders pay more than $40 in interest? (2.5 marks)
  3. What proportion of the Bank’s Visa card holders pay less than $15 in interest? (2.5 marks)
  4. What interest payment is exceeded by only 20% of the bank’s Visa cardholders? (2.5 marks)

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