Answered: Suppose Canadian home-owners owe an…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Question

Suppose Canadian home-owners owe an average of $194,000 on their mortgages. Assume that mortgage debt is normally distributed in Canada with a standard deviation of $87,000.

Standard Normal Distribution Table

a. Albertans are reported to owe $247,400 in mortgage debt, much higher than the Canadian average. What is the probability of randomly selecting a Canadian with mortgage debt that exceeds $247,400?

Round to four decimal places if necessary

b. What is the probability of randomly selecting a Canadian with mortgage debt below $93,000?

Round to four decimal places if necessary

c. Determine the minimum mortgage debt owing by the 24% of Canadians with the largest mortgages.

Round to the nearest dollar

Features Features Normal distribution is characterized by two parameters, mean (µ) and standard deviation (σ). When graphed, the mean represents the center of the bell curve and the graph is perfectly symmetric about the center. The mean, median, and mode are all equal for a normal distribution. The standard deviation measures the data's spread from the center. The higher the standard deviation, the more the data is spread out and the flatter the bell curve looks. Variance is another commonly used measure of the spread of the distribution and is equal to the square of the standard deviation.

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