Solved

A Recent Survey of Banks Revealed the Following Distribution for the Interest

Question 76

Multiple Choice

A recent survey of banks revealed the following distribution for the interest rate being charged on a home loan (based on a 30-year mortgage with a 10% down payment) . If a bank is selected at random from this distribution, what is the chance that the interest rate charged on a home loan will exceed 8.0%?
 Interest Rate 7.0%7.5%8.0%8.5%>8.5% Probability 0.120.230.240.350.06\begin{array} { l | l l l l l } \text { Interest Rate } & 7.0 \% & 7.5 \% & 8.0 \% & 8.5 \%& > 8.5 \% \\\hline \text { Probability } & 0.12 & 0.23 & 0.24 & 0.35 & 0.06\end{array}


A) 0.06
B) 0.59
C) 0.41
D) 1.00

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions