Chapter 4.3, Problem 95E

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.

1. 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.
2. b. Obtain the probability in part (a) by using the general addition rule.
3. c. Which method did you find easier?