Question

The starting salaries of individuals with an MBA degree are normally distributed with a mean of $40,000 and a standard deviation of $5,000. Refer to Exhibit 6-4. What is the probability that a randomly selected individual with an MBA degree will get a starting salary of at least $47,500

Answer 1

Answer: The answer is 6.68%

Explanation:

Using the z value formula

Z = x - mean / standard deviation

x = $47,500

Mean = $40,000

Standard deviation = $5,000

= 47,500 - 40,000 / 5,000

= 7,500 / 5,000

= 1.5

Then we look for z value of 1.5 to the left of normal distribution table because the probability is at least

The z value is 0.0668

0.0668 × 100

= 6.68%

Therefore the probability that an individual with an MBA degree will get a starting salary of at least $47,500 is 6.68%