Question

College Debt.Student A graduated from a 4-year college with anoutstanding loan of $9,650 where the mean debt was $8,455 with astandard deviation of $1865. Student B graduated from a university with anoutstanding loan of $12,360 where the mean debt was $10.326 with astandard deviation of $2,143. Which student had a higher debt inrelationship to his or her peers?

Answer 1

Debts

We have that

We have that the mean is related to the loan that the students of each institution "tend" to have.

We are going to use the Z score formula in order to find how far is the loan from the mean, this indicated how higher is the debt of each student (loan) compared to the loan of their peers (mean).

We have that Z score formula is given by:

`Z=\frac{x-\bar{x}}{s}`

Student A

For the college student, using the first table and replacing on the Z formula, we have that:

`\begin{gathered} Z=\frac{x-\bar{x}}{s} \\ \downarrow \\ Z=(9650-8455)/(1865) \\ =(1195)/(1865)=0.64 \end{gathered}`

Student B

For the university student, we find Z:

`\begin{gathered} Z=\frac{x-\bar{x}}{s} \\ \downarrow \\ Z=(12360-10326)/(2143) \\ =(2034)/(2143)=0.94 \end{gathered}`

So we would say then that the university student borrowed more or have more debt than the college student relative to the schools that they went to. because 0.94 > 0.64

Answer: student B had a higher debt in relationship to his or her peers