Question

A banks loan officer writes applications for credit the ratings are normally distributed with a mean of 200 and a standard deviation of 50 fine P 60 the score which separates the lower 60% from the top 40% round to 1 Decimal Pl.

Answer 1

212.7

Explanation:

Calculation to Find P60 the score which separates the lower 60% from the top 40%

First step is to find z of 60% using the invNorm distribution

Hence,

z=0.6=0.2533

Now let Find P60 which is the score which separates the lower 60% from the top 40% using this formula

x<=>z

Where,

Standard deviation=50

Mean=200

z=0.2533

Let plug in the formula

x=0.2533*50+200

x=12.665+200

x=212.665

x=212.7(Approximately)

Therefore the score which separates the lower 60% from the top 40% is 212.7