Question

The average hourly wage of employees of a certain company is $9.83. Assume the variable is normally distributed. If the standard deviation is $4.58, find the probability that a randomly selected employee earns less than $5.43

Answer 1

The average hourly wage of employees of a certain company is $9.83. Assume the variable is normally distributed. If the standard deviation is $4.58, find the probability that a randomly selected employee earns less than $5.43.
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Find the z-score of 5.43
z(5.43) = (5.43-9.83)/4.58 = -0.960699
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Then P(x < 5.43) = P(z < -0.960699) = 0.1684 = 16.84%