Computing probability of debt for randomly selected borrower

Reference no: EM1311463

1) For borrowers with good credit score, mean debt for revolving and instalment accounts is $15,015 (Business Week, March 20, 2006). Suppose standard deviation is $3540 and that debt amounts are generally distributed.

a) Compute the probability that debt for a randomly selected borrower with good credit is more than $18,000?

b) Compute the probability that debt for a randomly selected borrower with good credit is less than $10,000?

c) Determine the probability that debt for randomly selected borrower with good credit is between $12,000 and $18,000?

Reference no: EM1311463

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