Question
QUESTION 3 The following data show the interest rates on 4 randomly chosen personal loans (in percents): 6.0, 10.7,9.8, 13.2. Calculate the mean interest rate of the sample. (please express your answer using 2 decimal places)
Ask by Boone Parsons. in the United States
Jan 24,2025
Real Tutor Solution
Tutor-Verified Answer
Answer
The mean interest rate is 9.93%.
Solution
To calculate the mean interest rate of the sample, follow these steps:
1. **Sum the interest rates:**
\[
6.0\% + 10.7\% + 9.8\% + 13.2\% = 39.7\%
\]
2. **Divide the total by the number of loans to find the mean:**
\[
\text{Mean} = \frac{39.7\%}{4} = 9.925\%
\]
3. **Round to two decimal places:**
\[
\text{Mean} = 9.93\%
\]
**Answer:** The mean interest rate of the sample is **9.93%**.
Reviewed and approved by the UpStudy tutoring team
Like
error msg
Explain 
Simplify this solution Mind Expander
To calculate the mean interest rate, you'll first want to add together all the interest rates: 6.0 + 10.7 + 9.8 + 13.2 = 39.7. Next, divide this sum by the total number of loans, which is 4. So, 39.7 / 4 = 9.925. Finally, rounding this to two decimal places, the mean interest rate of the sample is 9.93%. Remember, the mean is just a numerical average, but it can give you a good idea of what to expect when looking at similar loans! Think of it as the "typical" interest that these loans carry!
