Question

According to Student Monitor, a New Jersey research firm, the average cumulated college student loan debt for a graduating senior is $25,760. Assume that the standard deviation of such student loan debt is $5,684. Thirty percent of these graduating seniors owe more than what amount?

Answer 1

We are given with
average cumulated loan = u= $25,760
standard deviation = d = $5,684

We are asked to determine the loan of 30% of the graduating seniors
A z-score for 30% is -0.50
Solving for the amount of loan
-0.5 = (x - 25760) / 5684
x = $22918