A car salesperson earns 1.5% commission on every car sold. The salesperson sell a car for $22,500. What is the commission?
2 answers:
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Answer:
So the value of height that separates the bottom 60% of data from the top 40% is 212.65. And rounded would be 212.7.
Step-by-step explanation:
1) Previous concepts
Normal distribution, is a "probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean".
The Z-score is "a numerical measurement used in statistics of a value's relationship to the mean (average) of a group of values, measured in terms of standard deviations from the mean".
2) Solution to the problem
Let X the random variable that represent the loan officer rates applicants for a credit of a population, and for this case we know the distribution for X is given by:
Where and
And the best way to solve this problem is using the normal standard distribution and the z score given by:
For this part we want to find a value a, such that we satisfy this condition:
(a)
(b)
Both conditions are equivalent on this case.
As we can see on the figure attached the z value that satisfy the condition with 0.60 of the area on the left and 0.40 of the area on the right it's z=0.253. On this case P(Z<0.253)=0.60 and P(z>0.253)=0.4
If we use condition (b) from previous we have this:
But we know which value of z satisfy the previous equation so then we can do this:
And if we solve for a we got
So the value of height that separates the bottom 60% of data from the top 40% is 212.65. And rounded would be 212.7.