In: Statistics and Probability
The annual commissions earned by sales representatives of Machine Products Inc., a
manufacturer of light machinery, follow the normal probability distribution. The mean
yearly amount earned is $40,000 and the standard deviation is $5,000.
a. What percent of the sales representatives earn more than $42,000 per year?
b. What percent of the sales earn less than 28,000 per year?
c. The sales manager wants to award the sales representatives who earn the largest
commissions a bonus of $1,000. He can award a bonus to 20 percent of the representatives.
What is the cutoff point between those who earn a bonus and those who do not?