Question

The chief finance person of a small company must distribute salary raises to her employees for next year.   She has decided that the mean raise is to be $2500, the standard deviation of the raises is to be $500, and the distribution is to be normal. (PLEASE PROVIDE STEP BY STEP).

1. The most productive 15% of the employees will have a raise equal to or greater than $____.
2. The 5% of employees who have done nothing useful in years will receive no more than $___ each.

Answer 1

Let the amount of salary raise in dollars be denoted as X.

The most productive 15% of the employees will have a raise equal to or greater than $R (let).

Thus according to the problem,

From the standard normal distribution table, it is obtained that :-

The most productive 15% of the employees will have a raise equal to or greater than $3018.22.

The 5% of employees who have done nothing useful in years will receive no more than $M each (let).

Thus according to the problem,

From the standard normal distribution table, it is obtained that :-

The 5% of employees who have done nothing useful in years will receive no more than $1677.57 each.