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brandid82 brandid82
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10 years ago
Considering the state of the housing market for the past few years, the management of a certain bank has decided to send the top 3% (in dollar value) of mortgage loan requests to a special high-value loan committee. This is based on the fact that some homes are being foreclosed not because the primary wage-earner in the family became unemployed but because the homeowners bought houses far more expensive than what they could actually afford.

The distribution of mortgage loan requests is normal with a mean of $143,000 and a standard deviation of $16,000.

What is the cutoff value, in dollars, of mortgage loan requests that must be sent to the special committee?

The "Standard Normal Table", also known as the "z Table", can be found by clicking "View Table of Contents", scrolling down to "Appendix B - Tables", and then scrolling down to Table 3 on page 716.   
       
 
    
   
     dollars
Please enter a whole number, with no decimal point.

I have the z Table open, but I have no idea how to begin calculating this problem.  Any help explaining how to solve would be greatly appreciated!  Thanks!
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