Question

Find the indicated probability. 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 170 and 220. Group of answer choices 0.1554 0.2257 0.3811 0.0703

Answer 1

The probability of a rating that is between 170 and 220 is 0.3811

Explanation:

According to the given data we have the following:

μ=200

σ=50

To calculate the probability of a rating that is between 170 and 220 we would have to use the following formula:

z=x-μ/σ

Therefore, 170-200/50=-0.60

220-200/50=0.40

Using normal cdf formula we get normal cdf(-0.60,0.40)

=0.3811

Therefore, the probability of a rating that is between 170 and 220 is 0.3811