
June 2026, Queston 1
The probability that the government retrospectively changes the student loan scheme in a way unfavourable to students is determined, from historic data, to be p=0.2 in any given year.
The probability of an unfavourable change in any year is independent from all previous years.
A newly qualified student has 40 years to repay their student loan before it is written off.
Calculate:
(a) The expected number of unfavourable changes to student loan repayment terms in the next 40 years. Show your workings . Expletives should be written in pencil and crossed through. [ 4 marks ]
(b) The probability that students will vote for any of the political parties involved in stitching them up. [ 1 mark ]
(c) The probability that graduates will avoid promotions or reduce their working hours or go sick and claim benefits in order to reduce or avoid their student loan repayments [ 1 mark ]
(d) Companies employing new graduates have not been offering to repay student debt. What is the probability that this situation will improve in the next 3 years? Explain your answer. [ 2 marks ]
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