A survey of banks revealed the following distribution for the interest rate being charged on a home loan (based on a 30-year mortgage with a 10% down payment) on a certain date in the past. $$\begin{array} { c | c | c | c | c | c }
\text { Interest Rate } & \begin{array} { c }
3.20 \% \
\text { to } \
3.29 \%
\end{array} & \begin{array} { c }
3.30 \% \
\text { to } \
3.39 \%
\end{array} & \begin{array} { c }
3.40 \% \
\text { to } \
3.49 \%
\end{array} & \begin{array} { c }
3.50 \% \
\text { to } \
3.59 \%
\end{array} & \begin{array} { c }
3.60 \% \
\text { and } \
\text { above }
\end{array} \
\hline \text { Probability } & 0.12 & 0.23 & 0.24 & 0.35 & 0.06
\end{array}$$ If a bank is selected at random from this distribution, what is the chance that the interest rate charged
On a home loan will exceed 3.49%?
A) 0.06
B) 0.41
C) 0.59
D) 1.00

Question

A survey of banks revealed the following distribution for the interest rate being charged on a home loan (based on a 30-year mortgage with a 10% down payment) on a certain date in the past. $$\begin{array} { c | c | c | c | c | c } 
\text { Interest Rate } & \begin{array} { c } 
3.20 \% \
\text { to } \
3.29 \%
\end{array} & \begin{array} { c } 
3.30 \% \
\text { to } \
3.39 \%
\end{array} & \begin{array} { c } 
3.40 \% \
\text { to } \
3.49 \%
\end{array} & \begin{array} { c } 
3.50 \% \
\text { to } \
3.59 \%
\end{array} & \begin{array} { c } 
3.60 \% \
\text { and } \
\text { above }
\end{array} \
\hline \text { Probability } & 0.12 & 0.23 & 0.24 & 0.35 & 0.06
\end{array}$$ If a bank is selected at random from this distribution, what is the chance that the interest rate charged
On a home loan will exceed 3.49%?
A) 0.06
B) 0.41
C) 0.59
D) 1.00

Quizplus · Accepted Answer

The probability that the interest rate exceeds 3.49% is the sum of the probabilities for the interest rate ranges 3.50% to 3.59% and 3.60% and above, which is 0.35 + 0.06 = 0.41.

A Survey of Banks Revealed the Following Distribution for the Interest