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1. Many students have accumulated a large amount of debt by the time they graduate fromcollege. Shown below is the percentage of students graduating with debt and the averageamount of debt for students graduating with debt at four national universities and at fourliberal arts colleges (U.S. News and World Report, America’s Best Colleges, 2008). a. If you randomly choose a graduate of Morehouse, what is the probability this indi-vidual will have graduated with debt?b. If you randomly choose one of these institutions for a follow-up study on studentloans, what is the probability you will choose an institution from which over 60% ofthe students graduated with debt?c. If you randomly choose one of these institutions for a follow-up study on studentloans, what is the probability you will choose an institution in which the averageamount of debt is greater than $30,000 per student graduating with debt?d. What is the probability a student graduates from Pace without any debt?e. For Pace University, what is the average amount of debt owed per graduating student? f. In making probability calculations above, were you using the classical, relative frequency, or subjective method?National Liberal ArtsUniversity % with Debt Amount($) College % with Debt Amount($)Pace 72 32,980 Wartburg 83 28,758Iowa State 69 32,130 Morehouse 94 27,000Massachusetts 55 11,227 Wellesley 55 10,206SUNY–Albany 64 11,856 Wofford 49 11,012
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