Question

The starting salaries of individuals with an mba degree are normally distributed with a mean of $40,000 and a standard deviation of $5,000. refer to exhibit 6-4. what is the probability that a randomly selected individual with an mba degree will get a starting salary of at least $30,000

Answer 1

With the mean of 40k and standard deviation of 5k, we need to find P(x>=30k). P((30k-40k)/5k) = P(z<-2) = 1-0.0228 which is equal to 0.9772. There is a 97.72% chances that the starting salary will be at least 30k.