Question

The average monthly mortgage payment including principal and interest is $982 in the U.S. If the standard deviation is $180 and the mortgage payments are approximately normally distributed. Find the probability that a randomly selected monthly payment is more than $1000

Answer 1

$\fontsize{18}{10}{\textup{\textbf{The required probability is 53.98}}}$

Step-by-step explanation:

The Z-score for a normal distribution is given by

Z = (x-mu)/sigma

x=1000

mu=982

sigma=180

So z-score=(1000-982)/180

z-score=0.1

For 0.1 Z-score, the respective probability from the Z-table is 0.5398

So the required probability is 53.98%