Question

The annual commissions per salesperson employed by a manufacturer of light machinery averaged $40,000 with a standard deviation of $5,000. What percent of the sales persons earn between $32,000 and $42,000?

Answer 1

Answer:

60.06%

Explanation:

For each of the amounts first of all we get the z values.

For $32,000 z= (Amount - Mean)/Standard deviation

z= (32,000- 40,000)/5,000= -1.6

For $42,000, z= (42,000- 40,000)/5,000

z= 0.4

Using probability tables to find the proportion of commission between 0.4 and -1.6, we will need to add 0.4452 and 0.1554.

This gives 0.6006= 60.06%

So the salesperson earns 60.06% commission between $32,000 and $42,000.