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z-score of a company is 5.
What is z- test?
A z-test is a statistical test used to determine whether two population means are different when the variances are known and the sample size is large.
The annual salaries of all employees at a financial company are normally distributed with a mean of $34,000 and a standard deviation of $4,000.
Now, using z- score
z= (x-)/
z= 54000- 34000/ 4000
z= 20000/4000
z=5.
Hence, z-score of a company is 5.
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