Question

In: Statistics and Probability

The annual commissions earned by sales representatives of Machine Products Inc., a manufacturer of light machinery,...

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?

Solutions

Expert Solution



a)

  
  
  
  

b)

  
  
  

c)






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