For borrowers with good credit scores, the mean debt for revolving and installme

Question

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.


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)?

Explanation / Answer

Mean 15015 SD 3380 X 18000 1) P(Normal Distribution) for X > 18000 0.188581372 2) P(Normal Distribution) for X < 10000 0.068940573 3) P(Normal Distribution) for 12000

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