A friend creates an IRA (Individual retirement account) with an APR of 6.25%. She starts the IRA at the age of 25 and deposits $
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Answer:
The probability that a household in Maryland has an annual income of X or more is 1 subtracted by the p-value of , in which
is the mean income and
is the standard deviation of incomes.
Step-by-step explanation:
Normal Probability Distribution:
Problems of normal distributions can be solved using the z-score formula.
In a set with mean and standard deviation
, the z-score of a measure X is given by:
The Z-score measures how many standard deviations the measure is from the mean. After finding the Z-score, we look at the z-score table and find the p-value associated with this z-score. This p-value is the probability that the value of the measure is smaller than X, that is, the percentile of X. Subtracting 1 by the p-value, we get the probability that the value of the measure is greater than X.
In this question:
Mean , standard deviation
What is the probability that a household in Maryland has an annual income of X or more?
The probability that a household in Maryland has an annual income of X or more is 1 subtracted by the p-value of , in which
is the mean income and
is the standard deviation of incomes.