Complete #3 two ways

i. Same as above

ii. using the Excel NORMDIST and NORMINV functions (demonstrated in the podcast)

NOTE: Excel functions (just as the table) may not directly give the answer you are looking for, you must understand what they return and how to use that result.

3. The credit score of customers applying for a mortgage at Checotah Credit is normally distributed with a mean of 600 and a standard deviation of 111.

a. What is the probability that a randomly selected customer will have a credit score of less than 650?

b. What is the probability that a randomly selected customer will have a credit score of more than 725?

c. What is the probability that randomly selected customers will have a credit score of more than 425?

d. 75% of the customers will have a credit score higher than what value?

e. What is the credit score that defines the upper 5 percent?

• Document your work clearly and completely. Show your steps
• Use Excel to calculate Z-scores
• Use Appendix Table B.3 Areas Under the Normal Curve from your text to find table probabilities.
• Write complete sentences to answer each question. The probability of . is ..