Question #1:- HP releases a new model with a MIPS rating of 310. Determine the percentile rank for this model. Assume that the mean MIPS rating of all workstations is 200 with a SD of 50. Solution:- We need to find the proportion of workstations with a MIPS rating of 310 or less. z=(310-200)/50=2.2 For a z score of 2.2 the percentage from the standard normal table is 97.22. The percentile rank is therefore 97.22+(100-97.22)/2 which is 98.61. Question #2:- What if an independent testing organization wanted to know the MIPS rating corresponding to the 90th percentile. Assume the mean and SD above. Solution:- We need to find the MIPS rating (x) so that 90% of workstations have ratings less than x. The z score in this case is 1.3 since from the standard normal table 80% of observations are between -1.3 and 1.3. The desired x value is: x=1.3(50)+200=265 The MIPS rating correponding to the 90th percentile is therefore 265. Question #3:- What if HP had claimed that the MIPS rating for the model in question #1 is in the 99th percentile. How would you validate this claim. Solution:- First find the z score for which 99% of observations are less than or equal to it. That is, find from the standard normal table the z value for an area of 98%. The z score is 2.35 (approx). 2.35=(unknown-200)/50 Then solve for the unknown value that defines the 99th percentile: unknown=50(2.35)+200 =317.5 Since 317.5 is greater than 310, HP's claim is invalid.