Suppose that Jason recently landed job offers at two companies. Company A report

Question

Suppose that Jason recently landed job offers at two companies. Company A reports an average salary of $51, 500 with a standard deviation of $2, 175. Company B reports an average salary of $46, 820 with a standard deviation of $5, 920. Assume that salaries at each company are normally distributed. Jason's goal is to secure a position that pays $55, 000 per year. What are the z-scores for Jason's desired salary at Company A and Company B? Please round your answers to two decimal places. Company A z: Company B z: At which company is Jason more likely to obtain his desired salary of $55, 000 per year? Company B, because the z-score for $55, 000 at Company B is less than the z-score for $55, 000 at Company A. Company A, because the z-score for $55, 000 at Company A is greater than the z-score for $55, 000 at Company B. Company A, because the z-score for $55, 000 at Company A is less than the z-score for $55, 000 at Company B. Company B, because the z-score for $55, 000 at Company B is greater than the z-score for $55, 000 at Company A.

Explanation / Answer

as z score =(X-mean)/std deviation

hence z score for company A =(55000-51500)/2175=1.6092

hence z score for company B =(55000-46820)/5920=1.3818

company B,because the z score for 55000 at company B is less than the z score for 55000 at company A

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