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Vikki [24]
3 years ago
9

The income distribution in a county is a normal distribution with a mean income of $10,000. The top 2.5% of the wage earners ear

n $18,000 or more. Which sentence most closely summarizes this information? 68% of the wage earners earn less than $14,000 each. 16% of the wage earners earn less than $14,000 each. 55% of the wage earners earn less than $14,000 each. 84% of the wage earners earn less than $14,000 each. 95% of the wage earners earn less than $14,000 each.

Mathematics
1 answer:
earnstyle [38]3 years ago
6 0

Answer:

<em>84%</em><em> of the wage earners earn less than $14,000 each. </em>

Step-by-step explanation:

The Empirical Rule (68-95-99.7%)-

According to this around 95% of the data will fall within two standard deviations of the mean.

As the bell curve is symmetrical, so the remaining 5% will be divided into 2 equal parts. So 2.5% will be above 2 standard deviation and 2.5% will be below 2 standard deviation.

As it is given that, the top 2.5% of the wage earners earn $18,000 or more, so 18,000 is 2 standard deviation away from the mean 10,000.

i.e 2\sigma=18000-10000=8000

\Rightarrow \sigma = 4000

We know that,

Z=\dfrac{X-\mu}{\sigma}

where,

X = raw score = 14,000

μ = 10,000

σ = 4,000

Putting the values,

Z=\dfrac{14000-10000}{4000}=\dfrac{4000}{4000}=1

Now, calculating the value from the z score table,

P(1)=0.8413=84.13\%

As the probability at z=1 is the area below that, so 84% of the wage earners earn less than $14,000 each.

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