A bank's loan officer rates applicants for credit. The ratings are normally distributed with a mean of 200 and a standard deviation of 50. If an applicant is randomly selected, find the probability of a rating that is between 200 and 275.

Question

Quizplus · Accepted Answer

The probability of a rating between 200 and 275 is the area under the normal distribution curve between z-scores of 0 and 1.5. Using a standard normal distribution table, we find that the area between z-scores of 0 and 1.5 is 0.4332.

A Bank's Loan Officer Rates Applicants for Credit