Question

Using NORM.DIST() or NORM.INV() function in Excel: Cal Tech Engineering School only considers students in the top 12.5% based on their quantitative GRE scores. The national average GRE score for the quantitative portion for all students taking the exam between July 1, 2001 and June 30, 2004 is 597 with a standard deviation of 148. Assume that GRE scores have a normal distribution. What score would a student need to be considered for Cal Tech Engineering School?

Answer 1

Here Mean = 597, standard deviation = 148

let 'a' be the GRE score of top 12.5%

that is P(X > a)=12.5% = 0.125

then P(X a) = 1 - 0.125 = 0.875

now in excel use the function NORM.INV(Probability, Mean, standard deviation)

   = NORM.INV(0.875, 597,148) = 767.2517

then we will get the value 767.2517