On a peer-to-peer (P2P) lending website, borrowers complete an approval scoring form that lenders use to assess creditworthiness. Borrowers are rated A, B, C or D, based on their scores, with A having the highest scores and D having the lowest. In a large sample of borrowers, 6% were rated A, 32% were rated B, 35% were rated C, and the rest were rated D. Suppose the scores are normally distributed with a mean of 300 and a standard deviation of 49. Round numeric answers to the nearest integer. a) What is the cut-off score between A and B? b) What is the cut-off score between B and C? c) What is the cut-off score between C and D? d) What score corresponds to the 60th percentile? e) What score corresponds to the 20th percentile? f) What is the minimum score above which lies 15% of the scores? g) Between what scores will the middle 58% of scores lie? Lower value = Higher value =
On a peer-to-peer (P2P) lending website, borrowers complete an approval scoring form that lenders use to assess creditworthiness. Borrowers are rated A, B, C or D, based on their scores, with A having the highest scores and D having the lowest.
In a large sample of borrowers, 6% were rated A, 32% were rated B, 35% were rated C, and the rest were rated D. Suppose the scores are
Round numeric answers to the nearest integer.
a) What is the cut-off score between A and B?
b) What is the cut-off score between B and C?
c) What is the cut-off score between C and D?
d) What score corresponds to the 60th percentile?
e) What score corresponds to the 20th percentile?
f) What is the minimum score above which lies 15% of the scores?
g) Between what scores will the middle 58% of scores lie?
Lower value = Higher value =
Trending now
This is a popular solution!
Step by step
Solved in 5 steps
