Question: Variable Description :

ATM withdrawal: Amount of euro currency withdrawn

For 300 million people in 12 Eurozone countries, the use of ATM machines is making it easier to use the new euro currency. ATM machines are handling up to 90% of the 14.5 billion euro notes issued. Financial analysts have warned that if people have a bad experience with their ATM that could undermine their belief in the currency. Suppose that a particular bank is interested in how much cash to keep in a local ATM machine. The bank manager believes that the average withdrawal from the local ATM machine on the weekend is 150 euros. A random sample of 60 transactions was recorded. Assume a standard deviation of 50 euros.

1. Plot a histogram of the amount of euros withdrawn using the local ATM machine. Describe the shape of the distribution.
2. Is there sufficient evidence to indicate that the average withdrawal differs from 150 euros? Use a 5% significance level. Would your conclusion change if you used a significance level of 10%?
3. Construct a 95% confidence interval for the average withdrawal. Is the confidence interval consistent with the conclusion in part b?

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