1.

Monthly expenditure on their credit cards, by credit card holders from a certain bank, follows a normal distribution with a mean of Rs. 1,295.00 and a standard deviation of Rs. 750.00. What proportion of credit card holders spend more than Rs. 1,500.00 on their credit cards per month?(a) 0.487(b) 0.394 (c) 0.500 (d) 0.791

Answer»

(b) 0.394

µ = 1295, σ = 750 

P(X > 1500) 

= P(Z > (1500 - 1295)/750) 

= P (Z > 0.27) = 0.5 – P (0 < Z < 0.27) 

= 0.5 – 0.1064 

= 0.3936 ~ 0.394



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