The mean credit score is 640 out of 300 used car loan applicants with a standard deviation of 16. Assuming a bell-shaped curve, what is the number of loan applicants that fall within a score of 608 and 672?
A) 96
B) 204
C) 285
D) 300

Question

Quizplus · Accepted Answer

In a bell-shaped curve (normal distribution), approximately 95% of the data falls within two standard deviations of the mean. Here, one standard deviation is 16, so two standard deviations are 32. Adding and subtracting two standard deviations from the mean (640 ± 32) gives us a range of 608 to 672. Therefore, about 95% of 300 applicants, which is 0.95 * 300 = 285 applicants, fall within this range.

The Mean Credit Score Is 640 Out of 300 Used