Answer:
(a) The fraction of employees is 0.84.
(b)
(c)
(d) No. The left part of the distribution would be truncated too much.
Step-by-step explanation:
(a) If the weekly salaries are normally distributed, estimate the fraction of employees that make more than $300 per week.
We have to calculate the z-value and compute the probability
(b) 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?
The mean of the salaries grows $100.
The standard deviation stays the same ($450)
(c) If every employee receives a 5% salary increase for the next year, how does the normal model change?
The increases means a salary X is multiplied by 1.05 (1.05X)
The mean of the salaries grows 5%, to $787.5.
The standard deviation increases by a 5% ($472.5)
(d) If the lowest salary is $300 and the median salary is $525, does a normal model appear appropriate?
No. The left part of the distribution would be truncated too much.
