Question

A bank's loan officer rates applicants using their FICO credit score. The ratings are normally distributed with a mean of 711 and a standard deviation of 80. Find the credit score which separates the lower 80% from the top 20%. g

Answer 1

Answer:

The answer is "778"

Step-by-step explanation:

Given value:

$\to \mu= 711\\\\\to \sigma= 80\\\\\to P(Z >0.84) = 0.20\\\\\to z = 0.84$

The formula for z-score:

$\to x = z \times \sigma + \mu \\\\\to x = 0.84 \times 80 + 711 \\\\ \to x=67.2 +711\\\\ \to x= 778.2\\\\ \to x= 778$