SOLUTION: Because of the relatively high interest rates, most consumers attempt to pay off their credit card bills promptly. However, this is not always possible. An analysis of the amount o

Question 428590: Because of the relatively high interest rates, most consumers attempt to pay off their credit card bills promptly. However, this is not always possible. An analysis of the amount of interest paid monthly by a bank's Visa cardholders reveals that the amount is normally distributed with a mean of 29 dollars and a standard deviation of 6 dollars.
What interest payment is exceeded by only 21% of the bank's Visa cardholders??
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
Because of the relatively high interest rates, most consumers attempt to pay off their credit card bills promptly. However, this is not always possible. An analysis of the amount of interest paid monthly by a bank's Visa cardholders reveals that the amount is normally distributed with a mean of 29 dollars and a standard deviation of 6 dollars.
What interest payment is exceeded by only 21% of the bank's Visa cardholders??
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Draw the picture of a normal curve with mean = 29
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Find the z-value with a right-tail of 0.21
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invNorm(0.79) = 0.8064
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Find the corresponding payment:
x = zs+u
x = 0.8064*6+29
x = $33.84
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Cheers,
Stan H.
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