A Bank's Loan Officer Rates Applicants for Credit

question 73

Multiple Choice

A bank's loan officer rates applicants for credit.The ratings can be described by a Normal model with a mean of 200 and a standard deviation of 50.If an applicant is randomly selected,what percentage can be expected to be between 200 and 275?

• A)6.68%
• B)43.32%
• C)93.32%
• D)42.37%
• E)5.00%

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Definitions:

Pollution Abatement

Actions or measures taken to reduce, control, or eliminate pollution from various sources.

Producer Surplus

The difference between the actual price a producer receives (or producers receive) and the minimum acceptable price; the triangular area above the supply curve and below the market price.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that suppliers are willing to sell.

Adverse Selection

A situation in which one party in a transaction has more or better information than the other, leading to an imbalance and potentially unfair outcomes.