Question

In: Statistics and Probability

Suppose the mean income of firms in the industry for a year is 25 million dollars...

Suppose the mean income of firms in the industry for a year is 25 million dollars with a standard deviation of 9 million dollars. If incomes for the industry are distributed normally, what is the probability that a randomly selected firm will earn less than 34 million dollars? Round your answer to four decimal places.

Expert Solution

Solution:

Given: x = income of firms in the industry for a year is normally distributed with mean of 25 million dollars and a standard deviation of 9 million dollars.

Find:

P( X < 34 million dollars) =...............?

P( X< 34) = ..........?

Find z score for x = 34

Thus we get:

P( X< 34) = P( Z< 1.00)

Look in z table for z = 1.0 and 0.00 and find corresponding area.

P(Z < 1.00) = 0.8413

Thus

P( X< 34) = P( Z< 1.00)

P( X< 34) = 0.8413

orchestra answered 1 year ago

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