FICO scores range in value from 300 to 850, with a higher score indicating a more creditworthy individual. The distribution of FICO scores is skewed left with a median score of 723. (a) Do you think the mean FICO score is greater than, less than, or equal to 723? Justify your response. (b) What proportion of individuals have a FICO score above 723?
Inverse Normal Distribution
The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.
Mean, Median, Mode
It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.
Z-Scores
A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.
FICO scores
distribution of FICO scores is skewed left with a
(a) Do you think the
(b) What proportion of individuals have a FICO score above 723?
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