# Check if the distribution is normal.

Whenever you apply for credit someone will check your credit score. Here is some data obtained from one of the agencies that administers the credit score.

The following is a distribution of FICO scores across the country:

a. Over 800-11% of the population

b. 700-800 - 49% of the population

c. 600-700 - 27% of the population

d. Less than 600-13% of the population

SOURCE; http://www.reedmc.com

1.. Does the credit score distribution follow a normal pattern?

Would you expect that to be the case? WHY or WHY NOT?

2. How does the shape of the distribution affect the pricing of the loan you are applying for?

3. Is it possible that there are any changes in the distribution over time (short or long term)?

What effects might that have?

If you go to the above website and click on "MANAGING YOUR CREDIT REPUTATION" you will find the article.

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#### Solution Preview

Please see the attached file.

Yes. We can say that these scores follow a normal distribution as we can see more or less a bell curve.

Lenders use credit scores to tell them how likely ...