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What is the probability that credit card holders pay less

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Question: Most credit card holders pay off their debt promptly, to avoid paying interest. However, sometimes, this is not possible. Interest paid monthly on credit card debt is normally distributed with a mean of $38 and a standard deviation of $5.

a) What is the probability that credit card holders pay less than $30 in debt? SHOW BASIC WORKINGS.

b) What interest payment caps the lowest 0.8% of all credit card holders? SHOW BASIC WORKINGS.

c) If you are now told that interest paid monthly is positively skewed, can you trust your answer to part a)? Briefly explain.

 

 

Reference no: EM133346111

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