Question 1 requires the use of the 68, 95, 99.7 rule. Does your daughter know that?
Hi, I am new to the forum and need help with a question from my daughter studying first year business, can anybody supply the answer below....thanks
. The weekly salary paid to employees of a small company that supplies part-time laborers averages $700 with a standard deviation of $400.
1) If the weekly salaries are normally distributed, estimate the fraction of employees that make more than $300 per week.
2) If every employee receives a year-end bonus that adds $100 to the paycheck in the final week, how does this change the normal model for that week?
3) If every employee receives a 5% salary increase for the next year, how does the normal model change?
4) If the lowest salary is $300 and the median salary is $500, does a normal model appear appropriate?
Do you or your daughter know what the "normal distribution" is? The "standard normal distribution" variable would be z= (x- 700)/400. Here, x= 300 so this is (300- 700)/400= -400/400= -1. So what is P(-1) in the standard normal distribution? There is no simple way to "calculate" that- you have to look it up in a table of the normal distribution. There is a good one at Standard Normal Distribution Table.
Adding $100 one week clearly changes the mean- by how much? Do you think it would change the standard deviation?2) If every employee receives a year-end bonus that adds $100 to the paycheck in the final week, how does this change the normal model for that week?
Increasing the salary by 5% increases the mean by 5%.3) If every employee receives a 5% salary increase for the next year, how does the normal model change?
That clearly depends upon what YOU consider "appropriate"!4) If the lowest salary is $300 and the median salary is $500, does a normal model appear appropriate?