Because of the relatively high interest rates, most consumers attempt to pay off

Question

Because of the relatively high interest rates, most consumers attempt to pay off their credit card bills promptly. However, this is not always possible. An analysis of the amount of interest part monthly by a banks Visa cardholders reveals that the amount & normally distributed with a mean of 25 dollars and a standard deviation of a dollars. What proportion of the bank's Visa cardholders pay more man 27 dollars in interest? Proportion = What proportion of the bank's Visa cardholders pay more than 35 dollars in interest? Proportion = What proportion of the bank's Visa cardholder pay less than 13 dollars in interest? Proportion = What interest payments exceeded by only 19%. Of the bank's Visa cardholders? Interest Payment =

Explanation / Answer

here mean=25, sigma=standard deviation=9

answer A)

P(x>27)

for x= 27, the z-value=z1=(27-25)/9=2/9=0.2222

P(x>27)=P(z>0.2222)=1-P(z<0.2222)=1-0.5879=0.4121

required proportion=0.4121

answer of B)

P(x>35)

for x= 35, the z-value=z1=(35-25)/9=10/9=1.1111

P(x>27)=P(z>1.1111)=1-P(z<1.1111)=1-0.8667=0.1333

required proportion=0.1333

answer of C)

P(x<13)

for x= 13, the z-value=z1=(13-25)/9=-12/9=4/3=-1.3333

P(x<13)=P(z<-1.3333)=0.0912

required proportion=0.0912

answer D)

here p=19%=0.19

we have to find z1 such that P(Z<z1)=0.19 and from table we get z1=-0.8779

z1=(x-25)/9=-0.8779

and x=25-9*0.8779=17.0989

interest payment=17.0989

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