The annual salaries of employees in a large company are approximately normally distributed with a mean of $50,000 and a standard deviation of $20,000.

a. What percent of people earn less than $40,000?
b. What percent of people earn between $45,000 and $65,000?
c. What percent of people earn more than $70,000?

a) 30.85% of people earn less than $40,000

b) 37.21% of people earn between $45,000 and $65,000.

c) 15.87% of people earn more than $70,000

Step-by-step explanation:

Problems of normally distributed samples are solved using the z-score formula.

In a set with mean and standard deviation , the zscore of a measure X is given by:

The Z-score measures how many standard deviations the measure is from the mean. After finding the Z-score, we look at the z-score table and find the p-value associated with this z-score. This p-value is the probability that the value of the measure is smaller than X, that is, the percentile of X. Subtracting 1 by the pvalue, we get the probability that the value of the measure is greater than X.

In this problem, we have that:

a.What percent of people earn less than $40,000?

This is the pvalue of Z when X = 40000. So

has a pvalue of 0.3085.

30.85% of people earn less than $40,000

b.What percent of people earn between $45,000 and $65,000?

This is the pvalue of Z when X = 65000 subtracted by the pvalue of Z when X = 45000. So

X = 65000

has a pvalue of 0.7734.

X = 45000

has a pvalue of 0.4013.

0.7734 - 0.4013 = 0.3721

37.21% of people earn between $45,000 and $65,000.

c.What percent of people earn more than $70,000?

This is 1 subtracted by the pvalue of Z when X = 70000. So

has a pvalue of 0.8413.

1 - 0.8413 = 0.1587

15.87% of people earn more than $70,000

step-by-step explanation:

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