Question

Suppose annual salaries for sales associates from Hayley's Heirlooms have a bell-shaped distribution with a mean of $32,500 and a standard deviation of $2,500. Refer to Exhibit 3-3. The z-score for a sales associate from this store who earns $28,000 is _____. (Note: z score = (x-mean)/standard deviation

Answer 1

Answer:

-1.8

Explanation:

Data provided in the question:

Mean = $32,500

Standard deviation = $2,500

Earning, X = $28,000

Now using the formula provided in the question for the calculation of the z - score, we have

z score = ( X - Mean ) ÷ ( Standard deviation )

on substituting the respective values, we get

z score = ( $28,000 - $32,500 ) ÷ ( $2,500 )

or

z score = -4500 ÷ $2,500

or

z - score = -1.8