Distribution for the interest rate


Question: A recent survey of banks revealed the following distribution for the interest rate being charged on a home loan (based on a 30-year mortgage with a 10% down payment).

Interest Rate 7.0%   7.5%   8.0%   8.5%    > 8.5%
Probability      0.12   0.23    0.24     0.35        0.06

If a bank is selected at random from this distribution, what is the chance that the interest rate charged on a home loan will exceed 8.0%?

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Basic Statistics: Distribution for the interest rate
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