Chapter 4.1, Problem 10E

Many students accumulate debt by the time they graduate from college. Shown in the following table is the percentage of graduates with debt and the average amount of debt for these graduates at four universities and four liberal arts colleges (U.S. News and World Report, America’s Best Colleges, 2008).

University	% with Debt	Amount($)	College	% with Debt	Amount($)
Pace	72	32,980	Wartburg	83	28,758
Iowa State	69	32,130	Morehouse	94	27,000
Massachusetts	55	11,227	Wellesley	55	10,206
SUNY—Albany	64	11,856	Wofford	49	11,012

1. a. If you randomly choose a graduate of Morehouse College, what is the probability that this individual graduated with debt?
2. b. If you randomly choose one of these eight institutions for a follow-up study on student loans, what is the probability that you will choose an institution with more than 60% of its graduates having debt?
3. c. If you randomly choose one of these eight institutions for a follow-up study on student loans, what is the probability that you will choose an institution whose graduates with debts have an average debt of more than $30,000?
4. d. What is the probability that a graduate of Pace University does not have debt?
5. e. For graduates of Pace University with debt, the average amount of debt is $32,980. Considering all graduates from Pace University, what is the average debt per graduate?