Assuming a normal distribution we find the standardized z scores for a:-
z1 = (80 - 180) / 25 = = -100/25 = -4
z2 = (280-180) / 25 = 4
Required P( -4 < z < 4) from the tables is >99.9%
b
z1 = 130-180 / 25 = -2
z2 = 230-180 / 25 = 2
from tables probability is 2* 0.4773 = 95.46 %
Step-by-step explanation:
look to the picture of my answer.
Outlier would be 25 because is the number that is the farthest away from the other numbers
The answer is c and then b and then a
Answer: a. They can find the present value of the remaining 20 years worth of payments.
Step-by-step explanation:
The present value of the payments for the servicing of the loan is the amount of the loan that is still owed because the payments include both the interest and the principal repayments.
The Schmidts can therefore find out the amount they still owe by checking the present value of the remaining 20 years worth of payments.
As the payments are usually constant they can be treated as an annuity so using the monthly payment as the annuity, the interest rate as the discount rate and the 20 years ( 240 months) as the period, they should be able to find the present value of the loan.
