The Average Annual Percentage Rate (APR) for Credit Cards Held

question 55

Short Answer

The average annual percentage rate (APR) for credit cards held by U.S. consumers is approximately 15 percent ("Ouch - Credit Card APR Now Tops 15 Percent," Time, January 3, 2012). Suppose the APR for new credit card offers is normally distributed with a mean of 15% and a standard deviation of 4%. What APR must a credit card charge to be in the bottom 10% of all cards?

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Definitions:

Evolutionary Changes

Alterations in the genetic makeup of a population over successive generations due to natural selection, genetic drift, mutation, and gene flow.

Identity Crisis

According to Erikson, a period of inner conflict during which one examines one’s values and makes decisions about one’s life roles.

Operant Conditioning

A simple form of learning in which an organism learns to engage in behavior that is reinforced.

Latency Stage

In psychoanalytic theory, the fourth stage of psychosexual development, characterized by repression of sexual impulses and development of skills.