Question

A bank’s loan officer rates applicants for credit. The ratings are normally distributed with a mean of 225 and a standard deviation of 35

. a. If one applicant is randomly chosen find the probability of a rating between 210 and 240. Round to four decimal places. (4 points)

b. The loan officer will only look at applicants that are in the top ten percent. Determine the rating that separates the bottom 90% from the top 10% of ratings for the applicants. (4 points)

Answer 1

(a). Probability is 0.3328

(b). Separating rating is 269.8