Question

According to one source, the average cumulated college student loan debt for a graduating senior is $29,400. Assume that such debt is normally distributed and that the standard deviation is $5,684. Thirty percent of these graduating seniors owe more than what amount?

Answer 1

$32378.416

Explanation:

We are asked to find: Thirty percent of these graduating seniors owe more than what amount.

More than 30% = Finding the z score of the 70% percentile.

The z score = 0.524

Hence, using z score formula:

z = (x-μ)/σ

0.524 = x - $29,400/$5,684

0.524 × 5684 = x - 29400

2978.416 = x - 29400

x = 29400 + 2978.416

x = $32378.416

Therefore, Thirty percent of these graduating seniors owe more than what amount $32378.416.