Problems based on Normal Distribution
For borrowers with good credit score, the mean debt for revolving and instalment accounts is $15,015 (Business Week, March 20, 2006). Assume the standard deviation is $3540 and that debt amounts are normally distributed.
a. What is the chance that the debt for a randomly selected borrower with good credit is more than $18,000?
b. What is the possibility that the debt for a randomly selected borrower with good credit is less than $10,000?
c. What is the possibility that the debt for a randomly selected borrower with good credit is between $12,000 and $18,000?
d. What is the possibility that the debt for a randomly selected borrower with good credit is mo more than $14,000?