A worker earns $15 per hour at a plant 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 plant is $7.50 per hour.

Question

Quizplus · Accepted Answer

This statement is false. The given information does not allow us to calculate the average wage for the plant, and $7.50 per hour is not a reasonable estimate for an average wage at a plant where workers earn up to $15 per hour.

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