SAT Verbal Scores Are Normally Distributed with a Mean of 430

question 19

Essay

SAT verbal scores are normally distributed with a mean of 430 and a standard deviation of 120 (based on data from the College Board ATP). Consider the following two problems, which appear at a glance to be very similar. Which one requires the application of the Central Limit Theorem, and in what way does the solution process differ between the two problems? (a)If a student is randomly selected, what is the probability that his or her score is above 500? (b)If a sample of 35 students is selected randomly, what is the probability that the sample mean will be above 500?

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Definitions:

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The amount of interest payment required to be paid on a loan or debt at a specified date.

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The amount that will be received at the maturity date of a financial instrument, typically including the principal and the interest.

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A financial asset representing a written promise to receive a specific amount of money, plus interest, from another party at a future date.

Interest Due

The amount of interest that has accumulated on borrowed funds or investments that is payable to the lender or investor.