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
b. Obtain the probability in part (a) by using the general addition rule.
c. Which method did you find easier?
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