Suppose the average outstanding loan for college graduates is $23500 with a standard deviation of $7200. In an SRS of 50 graduating college students, what is the probability that their mean outstanding loan is under $21000? A ...0000B ...0070C ...0141D ...3637E ...9930

B ...007

Step-by-step explanation:

Mean=μ=23500

Standard deviation=σ=7200

For sample of 50 students

Mean=μxbar=μx=23500

Standard deviation=σxbar=σ/√n=7200/√50=1018.23

So, the probability that mean outstanding loan for students is under $21000

P (xbar<21000) = P ((xbar-μxbar) / σxbar< (21000-23500) / 1018.23) = P (Z<-2.455)

P (xbar<21000) = P (Z<-2.455)

P (xbar<21000) = P (-∞
P (xbar<21000) = 0.5-0.4930=0.007

Thus, the probability that mean outstanding loan for students is under $21000 is 0.007.