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Last year, the typical college student graduated with $25,300 in debt (The Boston Globe, May 27,...

Last year, the typical college student graduated with $25,300 in debt (The Boston Globe, May 27, 2012). Let debt among recent college graduates be normally distributed with a standard deviation of $6,000.

a. What is the probability that the average debt of seven recent college graduates is more than $21,000?

b.What is the probability that the average debt of seven recent college graduates is more than $26,000?

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Answer #1

Ans:

a)

z=(21000-25300)/(6000/sqrt(7))

z=-1.896

P(z>-1.896)=0.9710

b)

z=(26000-25300)/(6000/sqrt(7))

z=0.309

P(z>0.309)=0.3787

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