The starting salaries of individuals with an MBA degree are normally distributed

Question

The starting salaries of individuals with an MBA degree are normally distributed with a mean of $55,000 and a standard deviation of $8,000. Complete the following questions using the standard normal distribution sheet.

In blank #1 enter the probability that an individual with an MBA degree has a starting salary less that $46,280. (Round your answer to 4 decimal places and enter your answer as 0.1234 and not .1234.)

In blank #2 enter the probability that an individual with an MBA degree has a starting salary more than $68,760. (Round your answer to 4 decimal places and enter your answer as 0.1234 and not .1234.)

In blank #3 enter the probability that an individual with an MBA degree has a starting salary between $44,280 and $65,720. (Round your answer to 4 decimal places and enter your answer as 0.1234 and not .1234.)

7.35% of individuals with an MBA degree have a starting salary less than what value? Enter your answer in blank #4. (Enter your answer as $35,724 and include the $ sign.)

Explanation / Answer

1)probability that an individual with an MBA degree has a starting salary less that $46,280=P(X<46280)

=P(Z<(46280-55000)/8000)=P(Z<-1.09)=0.1379

2)probability that an individual with an MBA degree has a starting salary more than $68,760 =P(X>68760)

=P(Z>1.72)=0.0427

3) probability that an individual with an MBA degree has a starting salary between $44,280 and $65,720

P(44280<Z<65720)=P(-1.34<Z<1.34)=0.9099-0.0901 =0.8198

4)for 7.35% ; z=-1.4502

therefore corresponding value =mean +z*std deviation =$43398.32

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