A regional bank issues different types of credit cards. As part of its annual re

Question

A regional bank issues different types of credit cards. As part of its annual review of the profitability of each type of credit card, the bank randomly samples 36 customers to measure the average quarterly charges per card. A random sample of 36 accounts from one type of credit card shows the accompanying spending per account (rounded to the nearest dollar). Complete parts a through e below Click the icon to view the data on credit card spending. a. Based on these randomly sampled accounts, what is the best point estimate of the true mean quarterly spending for credit card account holders? Round to the nearest cent as needed.) b. If the bank s interested in developing a 90% confidence interval estimate of mean quarterly spending, what distribution will be used to obtain the critical value? O binomial distribution O t-distribution O standard normal distribution uniform distribution c. Determine the sampling error of the sampling distribution (Round to the nearest cent as needed.) d Construct the 90% confidence interval estimate for the population mean of quarterly credit card spending for the bank's customers. The 90% confidence interval estimate is $?-1 (Round to the nearest cent as needed. Use ascending order.)

Explanation / Answer

Solution:- Given 2506,3844,3607,3093,2512,3226,2878,3324,3474,2579,2512,1030,2345,2554,3276,3484,2221,2390,2353,2725,3500,2464,3393,3085,3075,2207,2936,3395,3052,3043,1647,2738,2437,2067,2310,3755

? = 2806.5833 , ? = 608.4935 , n = 36

a) point estmate = $2806.5833

b) option C. standard normal distribution.

c) sampling error = 608.4935/sqrt(36) = 101.4156

d) 90% confidence interval estimate for the population mean = X +/- Z*S/sqrt(n)
= 2806.5833 +/- 1.645*101.4156
= $2639.7546 , $2973.4120

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