SOLUTION: The amounts of money requested in home loan applications at the federal savings are approximately normally distributed with a mean of $70000 and a standard deviation of $20000. a

Question 523759: The amounts of money requested in home loan applications at the federal savings are approximately normally distributed with a mean of $70000 and a standard deviation of $20000. a loan application is received. what is the probability that:
1. the amount requested is $80 000 or more
2. twenty percent of the loans are larger than what amount
1 have tried to work the first question
80000 - 70000 / 20000 = 0,05
= 0.5 - 0,05
= 1.65 am stuck
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
The amounts of money requested in home loan applications at the federal savings are approximately normally distributed with a mean of $70000 and a standard deviation of $20000. a loan application is received. what is the probability that:
1. the amount requested is $80 000 or more
1 have tried to work the first question
z(80000) = (80000 - 70000) / 20000 = 0.5
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P(x >= 80000) = P(z>= 0.5) = 0.3085
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2. twenty percent of the loans are larger than what amount
Find the z-value with a left tail of 80%
invNorm(0.8) = 0.8416
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Find the corresponding loan value using x = zs+u
x = 0.8416*20000+70000 = $86832.42
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Cheers,
Stan H.
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