In: Economics
According to the bureau of labor statistics, it takes an average of 22 weeks for someone over 55 to find a new job, compared with 16 weeks for younger workers. Assume that the probability distributions are normal and that the standard deviation is 2 weeks for both distributions.
A) What is the probability that it takes a worker over the age of 55 more than 19 weeks to find a job?
B) What is the probability that it takes a younger worker more than 19 weeks to find a job?
C) What is the probability that it takes a worker over the age of 55 between 23 and 25 weeks to find a job?
D) What is the probability that it takes a younger worker between 23 and 25 weeks to find a job?
A) The Z score for a normal distribution is calculated as follows
Z = ( 19 - 22) 2
Z = -1.5
Probability that it takes a worker over the age of 55 to find jobs in 19 weeks = .06681
Probability that it takes a worker over the age of 55 to find jobs in more than 19 weeks = 0.5 - .06681
Probability that it takes a worker over the age of 55 to find jobs in more than 19 weeks = 0.43319
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B) Z = (19 - 16) 2
Z = 1.5
Probability that it takes the younger worker more than 19 weeks to find a job = (1 - 0.93319)
Probability that it takes the younger worker more than 19 weeks to find a job = 0.06681
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C) Probability that it takes a worker over the age of 55 about 23 weeks to find a job
Z = (23 - 22) / 2
Z = 0.5
Probability that it takes a worker over the age of 55 about 23 weeks to find a job = .69146
Probability that it takes a worker over the age of 55 about 25 weeks to find a job
Z = (25 - 22) / 2
Z = 1.5
Probability that it takes a worker over the age of 55 about 25 weeks to find a job = .93319
Probability that it takes a worker over the age of 55 between 23 weeks and 25 weeks to find a job = (0.93319 - .69146)
Probability that it takes a worker over the age of 55 between 23 weeks and 25 weeks to find a job = 0.24173
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D)
Probability that it takes a younger worker 23 weeks to find a job
Z = ( 23 - 16) / 2
Z = 3.5
Probability that it takes a younger worker 23 weeks to find a job = .99977
Probability that it takes a younger worker 25 weeks to find a job
Z = (25 - 16) / 2
Z = 4.5
Probability that it takes a younger worker 25 weeks to find a job = 0.99997
Probability that it takes a younger worker between 23 and 25 weeks to find a job = 0.99997 - .99977
Probability that it takes a younger worker between 23 and 25 weeks to find a job = 0.0002