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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
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 E} having the lowest. In a large sample of borrowers, 41% were rated A, 24% were rated E. 18% were rated C, and the rest were rated D. Suppose the scores are normally distributed with a mean of 322 and a standard deviation of 48. 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 25th percentile?| | e] What score corresponds to the lth percentile?| ' 1'} What is the minimum score above which lies 13% of the scores? ' | g] Between what scores will the middle 60% of scores lie? Lower value =| | Higher value :| |
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