Question

Entrance to a prestigious MBA program in India is determined by a national test where only the top 10% of the examinees are admitted to the program. Suppose it is known that the scores on this test are normally distributed with a mean of 420 and a standard deviation of 80. Parul Monga is trying desperately to get into this program. What is the minimum score that she must earn to get admitted?

Answer 1

The minimum score that she must earn to get admitted is 523.

Explanation:

As the scores are normally distributed, we can calculate the probability using the z-score.

The distribution has a mean of 420 and a standard deviation of 80.

We have to calculate the z-score z* that satisfies:

`P(z>z^*)=0.1`

This happens for z*=1.28155.

Then, we can calculate the score as:

`X=\mu+z\cdot\sigma=420+1.28155\cdot 80=420+102.524=522.524`