1. A study was done by ValuePenguin in May 2020, that looked at the average credit...

1. A study was done by ValuePenguin in May 2020, that looked at the average credit cards debt of Americans. Suppose they found that the credit card debts are normal distributed with a mean of $5,700 and the standard deviation σ = $1,850.

probability that a randomly selected consumer will have a credit card debt of more than $5,000.
probability that, if 30 randomly selected consumers are selected, their sample mean credit card debt will be more than $5,000.
why the probability changed from part a. to part b.

Please show complete work and explanation. thank you

Solutions

Expert Solution

a) Let X denotes the credit card debt of a randomly selected consumer .

Here,

X ~ Normal(5700, 1850²)

The probability that a randomly selected consumer will have a credit card debt of more than $5,000

orchestra answered 1 year ago

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