Question

In: Economics

According to the bureau of labor statistics, it takes an average of 22 weeks for someone...

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?

Solutions

Expert Solution

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

__________________________________________________________________

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

________________________________________________________________________

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


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