Essay
Standard Normal. University Savings, Inc offers personal checking accounts to commercial and individual customers. Although unit costs cannot be determined precisely, University anticipates that monthly costs will be normally distributed around a mean of $5 per unit with a standard deviation of $1 per unit.
A. What is the probability that University would make a profit at a checking price of $5 per unit?
B. Calculate the unit price necessary to give University a 90% chance of making a profit on an individual checking account.
C. If University offers its accounts at a price of $6, what is the probability that it will make a profit?
Correct Answer:
Verified
Correct Answer:
Verified
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