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 $3,730 and that debt amounts are normally distributed.
a. What is the probability that the debt for a randomly selected borrower with good credit is more than $18,000 (to 4 decimals)?
b. What is the probability that the debt for a randomly selected borrower with good credit is less than $10,000 (to 4 decimals)?
c.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)?
d. What is the probability that the debt for a randomly selected borrower with good credit is no more than $14,000 (to 4 decimals)?
1 answer