Question

The average salary for graduates entering the actuarial field is $40,000. If the salaries are normally distributed with a standard deviation of $5000, find the probability that a group of nine graduates will have a group average over $45,000.

Part A: Complete Z curve sketch:

Part B: Calculate Z formula:

Part C: Determine probability:

Answer 1

Part A:

Following is the curve:

(b)

(c)

------------------------------------------------------------------------------