Student Debt. The Association of American Universities published a report titled “Looking More Closely at Student Debt.” This report explores the issue about the cost of a college education and its impact on student loan debt. Using information from a credit reporting company, the following table provides a percentage distribution for the loan balance of outstanding student loans from individuals with graduate, professional, and undergraduate degree debt. Loan balance Percentage $1–$10,000 43.1 $10,001–$25,000 29.2 $25,001–$50,000 16.5 $50,001–$75,000 5.8 $75,001–$100,000 2.3 $100,001 or more 3.1 Suppose that one of these individuals is selected at random. a. Without using the general addition rule, determine the probability that the individual obtained has a loan balance either between $10,001 and $100,000, inclusive, or at most $75,000. b. Obtain the probability in part (a) by using the general addition rule. c. Which method did you find easier?
Student Debt. The Association of American Universities published a report titled “Looking More Closely at Student Debt.” This report explores the issue about the cost of a college education and its impact on student loan debt. Using information from a credit reporting company, the following table provides a percentage distribution for the loan balance of outstanding student loans from individuals with graduate, professional, and undergraduate degree debt.
|
Loan balance |
Percentage |
|
$1–$10,000 |
43.1 |
|
$10,001–$25,000 |
29.2 |
|
$25,001–$50,000 |
16.5 |
|
$50,001–$75,000 |
5.8 |
|
$75,001–$100,000
|
2.3 |
|
$100,001 or more |
3.1 |
|
|
|
Suppose that one of these individuals is selected at random.
a. Without using the general addition rule, determine the probability that the individual obtained has a loan balance either between $10,001 and $100,000, inclusive, or at most $75,000.
b. Obtain the probability in part (a) by using the general addition rule.
c. Which method did you find easier?
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