U.S. consumers are increasingly viewing debit cards as a convenient substitute for cash and checks. The average amount spent annually on a debit card is $7,790. Assume that the average amount spent on a debit card is normally distributed with a standard deviation of $500.

Required:
A consumer advocate comments that the majority of consumers spend over $8,000 on a debit card. Find a flaw in this statement. (Round your final answer to 4 decimal places.)

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raphealnwobi raphealnwobi · Answer 1 · 2022-03-21T11:26:44+01:00

About 33.72% of the consumers spend over $8,000 on a debit card.

The z score is used to determine by how many standard deviations the raw score is above or below the mean. It is given by:

z = (raw score - mean) / standard deviation

Given that:

Mean = $7790, standard deviation = $500, for > $8000:

z = (8000 - 7790)/500 = 0.42

P(z > 0.42) = 1 - P(z < 0.42) = 1 - 0.6628 = 0.3372

About 33.72% of the consumers spend over $8,000 on a debit card.

Find out more on z score at: https://brainly.com/question/25638875