The mean of a set of credit scores is [tex]\mu = 690[/tex] and [tex]\sigma = 14[/tex]. Which credit score is within a [tex]z[/tex]-score of 3.3?

A. 634
B. 640
C. 720
D. 750



Answer :

To determine which credit scores fall within a z-score of 3.3 from the mean, we need to consider the range of values that lie within this interval.

Given:
- The mean (μ) is 690.
- The standard deviation (σ) is 14.
- The z-score threshold is 3.3.

The range within a z-score of 3.3 can be calculated as follows:
1. Calculate the lower bound of the range:
[tex]\[ \text{Lower bound} = \mu - z \cdot \sigma \][/tex]
Substituting the given values:
[tex]\[ \text{Lower bound} = 690 - 3.3 \cdot 14 = 643.8 \][/tex]

2. Calculate the upper bound of the range:
[tex]\[ \text{Upper bound} = \mu + z \cdot \sigma \][/tex]
Substituting the given values:
[tex]\[ \text{Upper bound} = 690 + 3.3 \cdot 14 = 736.2 \][/tex]

The range of credit scores within a z-score of 3.3 is from 643.8 to 736.2. Now, we will check which of the given credit scores lie within this range:

- 634: This is below 643.8, so it is not within the range.
- 640: This is below 643.8, so it is not within the range.
- 720: This is within the range of 643.8 to 736.2.
- 750: This is above 736.2, so it is not within the range.

Therefore, the credit score that is within a z-score of 3.3 from the mean is 720.