Question

The average starting salary of this year’s graduates of a large university (LU) is $55,000 with a standard deviation of $4,000. Furthermore, it is known that the starting salaries are normally distributed.

What is the probability that a randomly selected LU graduate will have a starting salary of at least $52,700?

Individuals with starting salaries of less than $45,00 receive a free class. What percentage of the graduates will receive the free class?

What percent of graduates will have their salaries one standard deviation from the mean?

What is the range of salaries that are one standard deviation from the mean?

Answer 1

1)

The following information has been provided:

We need to compute Pr(X≥52700). The corresponding z-value needed to be computed is:

Therefore, we get that

2)

We need to compute Pr(X≤45000). The corresponding z-value needed to be computed:

Therefore,

Hence 0.62% individuals will receive a free class.

3)

We have to find

d)

The range of salaries that are one standard deviation from the mean as mentioned above : 51000 < X < 59000

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