Question

Use simulation in SAS.

FICO scores nationally have an average of 640 with a standard deviation of 60. If you simulated the credit scores of 10,000 borrowers, what percent of FICO scores are less than 500? Greater than 850? Find the mean and standard deviation of scores that meet these conditions.

Answer 1

Percent of Scores less than 500 = 1.33%

Percent of Scores more than 850 = 0.03%

Mean of scores that are less than 500 479.5443

SD of scores that are less than 500 17.58796

Mean of scores that are greater than 850 861.4842

SD of scores that are greater than 850 6.193648

Note: All the above values are based on one sample only.

SAS is not available online. You can use this R-code and transform it into SAS code if you have it.

R-code:

set.seed(1)
y <- rnorm(10000, mean = 640, sd = 60)
count_1 = 0
count_2 = 0
list_1 = list()
list_2 = list()

for (i in y)
{
if(i<500)
{
list_1<-c(list_1,i)
count_1 = count_1 + 1
  
  
}
  
if(i>850)
{
list_2<-c(list_2,i)
count_2 = count_2 + 1
}
  
}

mean(as.numeric(list_1))
mean(as.numeric(list_2))

sd(as.numeric(list_1))
sd(as.numeric(list_2))