Overview of transformation

THE banking industry’s collective response to the pandemic thus far has been notable. It was no easy feat to go fully virtual and execute an untested operating model in a matter of weeks. Despite some hiccups, many banking operations were executed smoothly. Customers were served, employees were productive, and regulators were reassured. Banks effectively deployed technology and demonstrated unprecedented agility and resilience.

irst, find the z score of a score of 80. this is given by the formula z = (x-u)/o, where x is the score, u is the mean, and o is the standard deviation. this gives

z = (80-78)/12 = 1/6 = .1667

now, find what percentile a z score of 1/6 correlates to in the normal distribution.

a z score of 1/6 = .1667 is equivalent to the 56.36th percentile of the distribution. so the probability a score is over this is 1-.5636 = .4364

the mean of a sample mean is equal to the original mean. however, the standard deviation of a sample mean is equal to the original standard deviation divided by the square root of n (sample size). so the new standard deviation is 12/sqrt(16) = 3.

the new z score is 80-78/3 = 2/3 = .667. this is equivalent to the 74.86th percentile. so the probability that the mean will be greater than this score is 1-.7486 = .2514.