A Survey of Banks Revealed the Following Distribution for the Interest

question 60

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) . $$\begin{array} { | c | c | c | c | c | c | } \hline \text { Interest Rate } & \begin{array} { c } 4.90 \% \text { to } \\4.99 \%\end{array} & \begin{array} { c } 5.00 \% \text { to } \\5.09 \%\end{array} & \begin{array} { c } 5.10 \% \text { to } \\5.19 \%\end{array} & \begin{array} { c } 5.20 \% \text { to } \\5.29 \%\end{array} & \begin{array} { c } 5.30 \% \text { and } \\\text { above }\end{array} \\\hline \text { Probability } & 0.12 & 0.23 & 0.24 & 0.35 & 0.06 \\\hline\end{array}$$
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 5.19%?

• A) 0.06
• B) 0.41
• C) 0.59
• D) 1.00

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Definitions:

State-Dependent Learning

A phenomenon that memory retrieval is most efficient when an individual is in the same state of consciousness as they were when the memory was formed.

Context Attribute

The context in which an event occurred, which can be a retrieval cue

Context Cues

Environmental or situational indicators that affect how behaviors and responses are displayed or interpreted.

Spatial

Relating to space or spatial relationships; involves the ability to visualize and manipulate objects and their positions in space.