Question

Most graduate schools of business require applicants for admission to take the Graduate Management Admission​ Council’s GMAT examination. Scores on the GMAT are roughly normally distributed with a mean of 527 and a standard deviation of 112.

If a prestigious business school will only take those students who score in the top​ 5%, what score would you need to have to be​ accepted?

Answer 1

Solution:-

Given that,

mean = = 527

standard deviation = = 112

Using standard normal table,

P(Z > z) = 5%

= 1 - P(Z < z) = 0.05  

= P(Z < z) = 1 - 0.05

= P(Z < z ) = 0.95

= P(Z < 1.65 ) = 0.95  

z =1.65

Using z-score formula,

x = z * +

x = 1.65* 112+527

x = 711.8

x=712 rounded