Questions:
0 Question 1 v B 0/10 pts '6 Suppose z is the standard normal variable. Draw the normal curve for each of the following probability statements to visualize the required area. Report answers accurate to at least 4 decimal places. a. P(z 1.03) = c. P(z > 0) = C] d. P(z > -4.3) = e. P(-1.71 1.16 given 2: > 0) = [:] h. P(z 1.29) = [:] i. P(z D) d. P(z > -1.56) = 1 P(z D) h. P(z g 1.28) = 0.5 + HE] g z s 1.28) i. P(-2.38 0.59) = 2 x P(z 0.34) = 0.5354 0 Question 4 ' El\" 0/15 pts '0 3 2 On a peer-to-peer (P2P) lending website, borrowers complete an approval scoring form that lenders use to assess creditworthiness. Lenders generally believe that borrowers who score at least 71 do not default on loans. Consequently, borrowers are rated A if their overall score is at least 71, otherwise they are rated B. A reasonably large sample of real borrower data was collected: i. among those that did not default on their loans, initial approval scores were normally distributed with a mean of 76.1 and a standard deviation of 7.2. ii. among those that defaulted on their loans, initial approval scores were normally distributed with a mean of 65.9 and a standard deviation of 10. Report each answer as a decimal (not percent) accurate to at least 4 decimal places. Answers from software or from rounded z-scores (to 2 decimal places) are accepted. 1. What proportion of borrowers that: a) defaulted were initially rated A? C] b) did not default were initially rated B? [:] c) defaulted were miscategorized initially? :] d) did not default were miscategorized initially? [:] 2. Among those that defaulted, what is the probability that a borrower: a) scored above 71.2? C] b) scored below 60.5 or above 71.9? C] c) was rated B and scored above 44.7? d) was rated A and scored below 71 .2? C] e) was rated A given scored above 65.9? [:] f) scored below 65.9 given rated B? C] 0 Question 5 V E 0/15 pts '0 3 2 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, 32% were rated A, 26% were rated B, 19% were rated C, and the rest were rated D. Suppose the scores are normally distributed with a mean of 303 and a standard deviation of 45. Round numeric answers to the nearest integer. a) What is the cut-off score between A and B? D b) What is the cut-off score between B and C? D c) What is the cut-off score between C and D? D d) What score corresponds to the 40th percentile? C] e) What score corresponds to the 65th percentile? C] f) What is the minimum score above which lies 11% of the scores? E] g) Between what scores will the middle 96% of scores lie? Lower value = [:] Higher value = C] h) What rating will a score of 253 receive? i) What rating will a score of 307 receive 'l Select an answer Drating Question Help: El Message instructor C'rating Brating Submit Question Arating 0 Question 6 '
