Explore BrainMass

# Statistics - Normal Distribution raw scores

Not what you're looking for? Search our solutions OR ask your own Custom question.

This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

Risk taking is an important part of investing. In order to make suitable investment decisions on behalf of their customers, portfolio managers give a questionnaire to new customers to measure their desire to take financial risks. The scores on the questionnaire are approximately normally distributed with a mean of 49.5 and a standard deviation of 16. The customers with scores in the bottom 15% are described as "risk averse." What is the questionnaire score that separates customers who are considered risk averse from those who are not? Carry your intermediate computations to at least four decimal places. Round your answer to at least one decimal place.

Â© BrainMass Inc. brainmass.com December 15, 2022, 8:02 pm ad1c9bdddf
https://brainmass.com/statistics/normal-distribution/statistics-normal-distribution-raw-scores-268052

#### Solution Preview

Given: mu = 49.5, sigma = 16 and Area under the standard normal curve ...

#### Solution Summary

This solution shows all the steps for calculating the score on a questionnaire that must be achieved to distinguish them as risk averse based on the mean score and standard deviation.

\$2.49