Question 465513: 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 $3,650 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! 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)?
z=(12000-15015)/3650 = -.8260
z=(18000-15015)/3650 = .8178
The area under the normal curve between -.8260 and .8178 is .5889 the probability that the debt for a randomly selected borrower with good credit is between $12,000 and $18,000
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Ed
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