SOLUTION: For borrowers with good credit scores, the mean debt for revolving and installment accounts is $15,015 (BusinessWeek, March 20, 2006). Assume the standard deviation is $3,380 and t
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Question 465438: For borrowers with good credit scores, the mean debt for revolving and installment accounts is $15,015 (BusinessWeek, March 20, 2006). Assume the standard deviation is $3,380 and that debt amounts are normally distributed.
What is the probability that the debt for a randomly selected borrower with good credit is more than $18,000 (to 4 decimals)?
What is the probability that the debt for a randomly selected borrower with good credit is less than $10,000 (to 4 decimals)?
What is the probability that the debt for a randomly selected borrower with good credit is between $12,000 and $18,000 (to 4 decimals)?
What is the probability that the debt for a randomly selected borrower with good credit is no more than $14,000 (to 4 decimals)?
Answer by edjones(8007) (Show Source): You can put this solution on YOUR website!
z=(18000-15015)/3380=.8831
area under normal curve above z=.8831 is .1886 the probability that the debt for a randomly selected borrower with good credit is more than $18,000.
.
Ed
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