In order to buy a house, a couple takes a mortgage of M dollars at an annuel rate of r percent to be paid off over N months
1 answer:
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Answer:
0.2776
Explanation:
Mean = 15000, SD = 1500
We need to find Cumulative probability: P(X > 15884)
First we need to convert it into normal distribution.
From the attached file, we can see the shaded area we are looking for.
For conversion as follow;
Next to find Z = = 0.59
now we have converted to normal distribution and found the value of Z, we need to find the probability P(X > 15884).
P(X > 15884) = P(Z > 0.59).
From the normal distribution table at Z= 0.59, and greater than 0.59, Probability = 0.2776.
