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An individual’s credit score is a number calculated based on that person’s credit history that helps a lender determine how much he/she should be loaned or what credit limit should be established for a credit card. An article in the Los Angeles Times gave data which suggested that a beta distribution with parameters A 5 150, B 5 850, a 5 8, b 5 2 would provide a reasonable approximation to the distribution of American credit scores. [Note: credit scores are integer-valued].
a. Let X represent a randomly selected American credit score. What are the
b. What is the approximate probability that a randomly selected score will exceed 750 (which lenders consider a very good score)?
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Probability and Statistics for Engineering and the Sciences
- Glencoe Algebra 1, Student Edition, 9780079039897...AlgebraISBN:9780079039897Author:CarterPublisher:McGraw HillBig Ideas Math A Bridge To Success Algebra 1: Stu...AlgebraISBN:9781680331141Author:HOUGHTON MIFFLIN HARCOURTPublisher:Houghton Mifflin Harcourt