Last year, the typical college student graduated with $27,400 in debt (The Bosto

Question

Last year, the typical college student graduated with $27,400 in debt (The Boston Globe, May 27, 2012). Let debt among recent college graduates be normally distributed with a standard deviation of $5,000. Use Table 1.(http://lectures.mhhe.com/connect/0078020557/Table/table1.jpg)

a. What is the probability that the average debt of three recent college graduates is more than $20,000? (Round “z” value to 2 decimal places, and final answer to 4 decimal places.) Probability

b. What is the probability that the average debt of three recent college graduates is more than $25,000? (Round “z” value to 2 decimal places, and final answer to 4 decimal places.)

Explanation / Answer

a)

probability that the average debt of three recent college graduates is more than $20,000:

b)

  probability that the average debt of three recent college graduates is more than $25,000:

for normal distribution z score =(X-)/ here mean=       = 27400.000 std deviation   == 5000.0000 sample size       =n= 3 std error=x=/n= 2886.7513

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