Question

The mean starting salary for college graduates in 2016 was $36,000. Assume that the distribution of starting salaries follows the normal distribution with a standard deviation of $3,000.

1.What is the probability that a graduate will have a starting salary more than $43,500?

2. What is the probability that a graduate will have a starting salary between $42,000 and $43,500?

3. What is the probability that a graduate will have a starting salary between $30,000 and $45,000?

4. What starting salary (or more) will the top 3% of the graduates have?

5. 99.97% of the observations will lie between what values?

Answer 1

The probability that a graduate will have a starting salary more than $43,500 is

The probability that a graduate will have a starting salary between $42,000 and $43,500 is

The probability that a graduate will have a starting salary between $30,000 and $45,000 is

From Z-table, Lookup for Z-value corresponding to area 0.03 to the right of the normal curve.

The starting salary (or more) will the top 3% of the graduates have is

From Z-table, Lookup for Z-value corresponding to area 0.00015 to the left of the normal curve.

From Z-table, Lookup for Z-value corresponding to area 0.00015 to the right of the normal curve.

The 99.97% of the observations will lie between