question archive An article by Erin El Issa titled "2015 American household credit card debt study" (www
An article by Erin El Issa titled "2015 American household credit card debt study" (www
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An article by Erin El Issa titled "2015 American household credit card debt study" (www.nerdwallet. com) indicated that for households that had credit card debt, the average debt in 2015 was $15,355. Assume that credit card debt per household has a normal distribution with a standard deviation of $3,000.
a. Determine the percentage of households that have a credit card debt of more than $15,000.
b. One household has a credit card debt that is at the 95th percentile. Determine its credit card debt.
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a) first we have to find the z value for 15000.
Z value=?s.dx−μ??
Z value =?300015000−15355??
Z value=-.118
For z value -.118
P(x>-.118)=.5471=54.71%
Step-by-step explanation
b) this family will have a card debt such that 95% of the debt values are distributed below this value
z value for 95% is 1.645( from standard normal distribution table)
Z value=?s.dx−μ??
Z =(x-15355)/3000
X=(1.645*3000)+15355
X=20,290
