4.95

4.95 Student Debt. The Association of American Universities pub- lished a report titled "Looking More Closely at Student Debt." This report explores the issue about the cost of a college education and its impact on student loan debt. Using information from a credit report- ing company, the following table provides a percentage distribution for the loan balance of outstanding student loans from individuals with graduate, professional, and undergraduate degree debt. Loan balance Percentage $1-$10,000 43.1 $10,001-$25,000 29.2 $25,001-$50,000 16.5 $50,001-$75,000 5.8 $75,001-$100,000 2.3 $100,001 or more 3.1 Suppose that one of these individuals is selected at random. a. Without using the general addition rule, determine the probabil- ity that the individual obtained has a loan balance either between $10,001 and $100,000, inclusive, or at most $75,000. b. Obtain the probability in part (a) by using the general addition rule. c. Which method did you find easier