Exercise 6-43 Algo An estimated 1.9 million students take on student loans to pa
ID: 3047619 • Letter: E
Question
Exercise 6-43 Algo An estimated 1.9 million students take on student loans to pay ever-rising tuition and room and board (The New York Times, April 17, 2009). It is also known that the average cumulative debt of recent college graduates is about $20,800. Let the cumulative debt among recent college graduates be normally distributed with a standard deviation of $9,000. Approximately how many recent college graduates have accumulated a student loan of more than $30,000? Use Table 1. (Round "z-value" to 2 decimal places.) Number of graduates
Explanation / Answer
P(X > 30000)
= P(z > (30000 - 20800)/9000)
= P(z > 1.02)
= 0.1539
Hence,
Number of graduates = 1900000*0.1539 = 292410