The average salary for graduates entering the actuarial field is $40,000. If the salaries are normally distributed with a standard deviation of $5000 (σ = 5000), find the probability that a graduate will have a salary over $45,000: P(X 45,000).

Question

The average salary for graduates entering the actuarial field is $40,000. If the salaries are normally distributed with a standard deviation of $5000 (σ = 5000), find the probability that a graduate will have a salary over $45,000: P(X > 45,000).

PsyDAG · Answer

Z = (score-mean)/SD Find table in the back of your statistics text labeled something like "areas under normal distribution" to find the proportion related to the Z score.