A Survey of Banks Revealed the Following Distribution for the Interest

question 84

Multiple Choice

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

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Definitions:

Memory Links

Connections formed in the brain between different pieces of stored information, facilitating recall and understanding.

Spatial Cognition

The knowledge and processes used to represent and navigate in and through space.

Space Of Navigation

Space of navigation refers to physical or virtual environments in which individuals or objects move and orient themselves.

Spatial Updating

The process of continuously revising one's mental representation of the spatial environment based on movement or new information.