(1 pt) Because of the relatively high interest rates, most consumers attempt to

Question

(1 pt) Because of the relatively high interest rates, most consumers attempt to pay off their credit card bills promptly, However, this is not always possible. An analysis of the amount of nterest paid monthly by a bank's Visa cardholders reveals that the amount is normally distributed with a mean of 29 dollars and a standard deviation of 6 dollars A. What proportion of the bank's Visa cardholders pay more than 33 dollars in interest? Proportion B. What proportion of the bank's Visa cardholders pay more than 41 dollars in interest? Proportion = C. What proportion of the bank's Visa cardholders pay less than 20 dollars in interest? Proportion = is e by only 21% of the bank's Visa cardholders? D. What interest Interest Payment

Explanation / Answer

A) P(X > 33) = P((X - mean)/SD > (33 - 29)/6)

= P(Z > 0.67)

= 1 - P(Z < 0.67)

= 1 - 0.7486 = 0.2514

B) P(X > 41) = P((X - mean)/SD > (41 - 29)/6)

= P(Z > 2)

= 1 - P(Z < 2)

= 1 - 0.9772 = 0.0228

C) P(X < 20) = P((X - mean)/SD < (20 - 29)/6)

= P(Z < -1.5)

= 0.0668

D) P(X > x) = 0.21

Or, P(P((X - mean)/SD > (x - 29)/6)) = 0.21

Or, P(Z > (x - 29)/6) = 0.21

Or, P(Z < (x - 29)/6) = 0.79

Or, (x - 29)/6 = 0.81

Or, x = 0.81 * 6 + 29

Or, x = 33.86

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