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.42 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.

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?

 

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Status NEW Posted 02 Aug 2017 02:08 PM My Price 7.00

x p-----------(x)----------- x*-----------p(x-----------) 1-----------0 0-----------.02----------- 0.-----------2 1-----------2 0-----------.06----------- 0.-----------72 -----------15 -----------0.0-----------8 1-----------.2 -----------20 -----------0.1-----------0 2----------- 25----------- 0.-----------16 -----------4 2-----------7 0-----------.28----------- 7.-----------56 -----------30 -----------0.1-----------5 4-----------.5 -----------35 -----------0.0-----------7 2-----------.45----------- 38----------- 0.-----------08 -----------3.0-----------4 -----------x=â-----------ˆ’b-----------±b-----------2âˆ-----------’4a-----------câˆ-----------š2a-----------x=â-----------ˆ’b-----------±b-----------2âˆ-----------’4a-----------c2a-----------mea-----------n

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