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. What is the probability that a randomly selected individual with an MBA degree will get a starting salary of at least $47,500?
A) 0.4332
B) 0.9332
C) 0.0668
D) 0.5000

Question

Quizplus · Accepted Answer

To find the probability that a randomly selected individual with an MBA degree will get a starting salary of at least $47,500, we use the Z-score formula: Z = (X - μ) / σ, where X is the value of interest ($47,500), μ is the mean ($40,000), and σ is the standard deviation ($5,000). Plugging in the values, we get Z = ($47,500 - $40,000) / $5,000 = 1.5. Looking up the Z-score of 1.5 in a standard normal distribution table or using a calculator, we find that the area to the left of Z = 1.5 is approximately 0.9332. Since we are interested in salaries at least $47,500, we look for the area to the right, which is 1 - 0.9332 = 0.0668. This means there's a 6.68% chance a randomly selected individual with an MBA will have a starting salary of at least $47,500.

The Starting Salaries of Individuals with an MBA Degree Are