Suppose scores on a college entrance exam are normally distributed with a mean of 550 and a standard deviation of 100. Find the score that marks the cut-off for the top 16% of the scores. Round to two decimal places.
Solution:
Given, X follows Normal distribution with,
= 550
= 100
For top 16% data , let x be the required cut-off.
P(X > x) = 16%
P(X > x) = 0.16
P(X < x) = 1 - 0.16
P(X < x) = 0.84
For the standard normal variable z , P(Z < z) = 0.84
Use z table , see where is 0.84 probability and then see the corresponding z value.
P(Z < 0.994) = 0.84
So z = 0.994
Now using z score formula ,
x = + (z * ) = 550 + (0.994 * 100) = 649.40
Required answer : 649.40
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