Find variance and standard deviation of the overdraft amount

Assignment Help Basic Statistics

Reference no: EM131426426

Economics and Finance

Bank overdraft fees range from $10 to $38, consumers believe they are annoying and excessive, and these fees are a huge revenue source for banks. The Overdraft Protection Act of 2013 is designed to limit overdraft fees in a variety of ways and to require fees to be reasonable and proportional to the amount of the overdraft. Let X be the amount of an overdraft fee for a randomly selected bank. The probability distribution for X is given in the table below.

X	10	12	15	20	25	27	30	35	38
P( x)	0.02	0.06	0.08	0.10	0.16	0.28	0.15	0.07	0.08

a. Find the mean, variance, and standard deviation of the overdraft amount.

b. Find the probability that a randomly selected bank has an overdraft fee greater than $25.

c. Find the probability that a randomly selected bank has an overdraft fee less than m 2 s.

d. Suppose three banks are selected at random. What is the probability that at least one bank has an overdraft fee less than $20?

Reference no: EM131426426

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