A worker earns $15 per hour at a company and is told that only 2.5% of all workers make a higher wage.If the wage is assumed to be normally distributed and the standard deviation of wage rates is $5 per hour,the average wage for the company is $7.50 per hour.

Question

Quizplus · Accepted Answer

The statement is contradictory and cannot be true. If the average wage for the company is $7.50 per hour and the worker earns $15 per hour, then they are already making twice the average wage, meaning more than 50% of workers should make a lower wage. However, the statement claims that only 2.5% of workers make a higher wage, which cannot be true if the worker in question makes $15 per hour. Additionally, the fact that the wage is assumed to be normally distributed with a standard deviation of $5 per hour does not provide enough information to support either statement about the percentage of workers making a higher wage.

A Worker Earns $15 Per Hour at a Company and Is