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Credit Card DebtThe average credit card debt for collcgc
Chapter 6, Problem 11E(choose chapter or problem)
Problem 11E
Credit Card DebtThe average credit card debt for collcgc seniors is $3262. If the debt is normally distributed with a standard deviation of $1100, find these probabilities.
a. That the senior owes at least $ 1000
b. That the senior owes more than $4000
c. That the senior owes between $3000 and $4000
Questions & Answers
QUESTION:
Problem 11E
Credit Card DebtThe average credit card debt for collcgc seniors is $3262. If the debt is normally distributed with a standard deviation of $1100, find these probabilities.
a. That the senior owes at least $ 1000
b. That the senior owes more than $4000
c. That the senior owes between $3000 and $4000
ANSWER:
Problem 11E
Credit Card Debt The average credit card debt for college seniors is $3262. If the debt is normally distributed with a standard deviation of $1100, find these probabilities.
a. That the senior owes at least $ 1000
b. That the senior owes more than $4000
c. That the senior owes between $3000 and $4000
Step by Step Solution
Step 1 of 3
Given,
a)
Find the z- score for X = 1000. The z score is actually the number of standard deviations that a particular X value is away from the mean.
The probability that the senior owes at least $ 1000 is the area under the curve above z = -2.06. The area under the curve below z-score is 0.0197; can be found using the Table E in Appendix. Then,
P(z > -2.06) = 1 - P(z < -2.06) = 1 - 0.0197 = 0.9803
The probability that the senior owes at least $ 1000 is 98.03%