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A Survey of Banks Revealed the Following Distribution for the Interest

Question 60

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A 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) .  Interest Rate 4.90% to 4.99%5.00% to 5.09%5.10% to 5.19%5.20% to 5.29%5.30% and  above  Probability 0.120.230.240.350.06\begin{array} { | c | c | c | c | c | c | } \hline \text { Interest Rate } & \begin{array} { c } 4.90 \% \text { to } \\4.99 \%\end{array} & \begin{array} { c } 5.00 \% \text { to } \\5.09 \%\end{array} & \begin{array} { c } 5.10 \% \text { to } \\5.19 \%\end{array} & \begin{array} { c } 5.20 \% \text { to } \\5.29 \%\end{array} & \begin{array} { c } 5.30 \% \text { and } \\\text { above }\end{array} \\\hline \text { Probability } & 0.12 & 0.23 & 0.24 & 0.35 & 0.06 \\\hline\end{array}
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 5.19%?


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

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