An estimated 1.8 million students take on student loans to pay ever-rising tuiti
ID: 3257728 • Letter: A
Question
An estimated 1.8 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 exist22, 500. Let the cumulative debt among recent college graduates be normally distributed with a standard deviation of exist7,000. Approximately how many recent college graduates have accumulated a student loan of more than exist30,000? Use Table 1. (Round "z" value to 2 decimal places.)Explanation / Answer
P(X > 30000)
= P(z > (30000 - 22500)/7000)
= P(z > 1.07)
= 0.1423
Hence,
Number of gradutes with the sum of more than $30,000 = 1800000*0.1423 = 256140