Question

The typical college student graduates with $27,600 in debt (the boston globe, may 27, 2012). let debt among recent college graduates be normally distributed with a standard deviation of $8,000.

a. What is the probability that the average debt of four recent college graduates is more than $25,000?

Answer 1

To find the probability that the average debt of four recent college graduates is more than $25,000, we need to use the normal distribution. Given the standard deviation and mean, we can standardize the value and find the probability using the standard normal distribution table or a calculator/software.

Step-by-step explanation:

To find the probability that the average debt of four recent college graduates is more than $25,000, we need to use the normal distribution. Given that the standard deviation is $8,000 and we want to find the probability of a debt greater than $25,000, we first need to standardize the value using the formula z = (x - μ) / σ, where x is the value, μ is the mean, and σ is the standard deviation.

In this case, the mean is $27,600. After standardizing the value, we can look up the corresponding z-value in the standard normal distribution table to find the probability. Alternatively, we can use a calculator or software to calculate the cumulative probability.