# Down River Federal Savings: Home Loan Applications

The amounts of money requested on home loan applications at Down River Federal Savings follow the normal distribution, with a mean of $70,000 and a standard deviation of 20,000. A loan application is received this morning. What is the probability:

a.) The amount requested is $80,000 or more?

b.) The amount requested is between $65,000 and $80,000?

c.) The amount requested is $65,000 or more?

https://brainmass.com/statistics/probability/the-amounts-of-money-requested-on-home-loan-applications-at-down-river-federal-savings-165796

#### Solution Preview

a.) The amount requested is $80,000 or more?

This is a z-test question.

Mean is M = 70000

Standard deviation is SD = 20000

Then compute z = (80000-M)/SD = (80000-70000)/20000 = 0.5

From a z-table*, we ...

#### Solution Summary

This solutions discussion finds a loan amount requested according to a mean and a standard deviation.

$2.19