Question

According to a National Association of Colleges and Employers, the average starting salary for new college graduates in health sciences is $51,541. The average starting salary for new college graduates in business is $53,901.† Assume that starting salaries are normally distributed and that the standard deviation for starting salaries for new college graduates in health sciences is $13,000. Assume that the standard deviation for starting salaries for new college graduates in business is $17,000.

What is the probability that a new college graduate in business will earn a starting salary of at least $63,000? (Round your answer to four decimal places.)

What is the probability that a new college graduate in health sciences will earn a starting salary of at least $63,000? (Round your answer to four decimal places.)

How much would a new college graduate in business have to earn in dollars in order to have a starting salary higher than 99% of all starting salaries of new college graduates in the health sciences? (Round your answer to the nearest whole number.)

Answer 1

Answer these question

Let Xrepresents starting salary for new college graduates in health sciences. Let Yrepresents starting salary for new college graduates in business. Here, X ~ N( 51541,11000)& Y~N(H2 53901,02 -15000) a) Compute the probability that a new college graduate in business will earn a starting salary of at least $65,000 P(Y 65000)- P600-53901 15000 -P(Z S-0.74) = NORMSDIST (-0.74) Use z-table or Excel function -0.2296 Therefore, probability that a new college graduate in business will earn a starting salary of at least $65,000 is 0.2296

b) Compute the probability that a new college graduate in health sciences wil earn a starting salary of at least $65,000. P(x2 65000)- 65000- 51541 -P(Z 21.22) -P(ZS-1.22) 1000 NORMSDIST(-1.22) Use z-table or 0.1112 Excel function) Therefore, probability that a new college graduate in health will earn a starting salary of at least $65,000 is 0.1112

c) Compute the probability that a new college graduate in health sciences will earn a starting salary of less than $40,000. P(x <40000)-PX400-51541 -P(Z<-1.05) 11000 NORMSDIST (-1.05) Use z-table or 0.1469 t lal ts Excel function Therefore, probability that a new college graduate in health sciences will earn a starting salary of less than $40,000 is 0.1469.

d) There is 1% of new graduates in the health science earn minimum of P (Z > x)-0.01 Value of z to the cumulative probability of 0.01 from normal table (z-table) is 2.33. That is, z- 2.33 So, -51541 (2.33) (11000) Therefore, a new college graduate in business have to earn in order to have a starting salary higher than 99% of all starting salaries of new college graduates in the health sciences is S77,171