Assume that the average annual salary for a worker in the United States is $33,0

Question

Assume that the average annual salary for a worker in the United States is $33,000 and that the annual salaries for Americans are normally distributed with a standard deviation equal to $6,250. Find the following:

(A) What percentage of Americans earn below $21,000?
(B) What percentage of Americans earn above $41,000?

Explanation / Answer

a) standard units = difference from the mean/ SD = (21,000 - 33,000) / 6250 = -1.92 => %= 94.5 (check your own table for z= 1.92) the percentage that below -1.92 = (100- area)/2 = (100- 94.5)/ 2 = 2.75% b) similarly z= (41,000-33,000)/ 6250= +1.28 => area= 80.6 the percentage that above +1.28 =(100-80.6)/2 = 9.7%

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