True or False: A worker earns $15 per hour at a plant in China 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

The given information about the worker's wage and the percentage of workers earning a higher wage can be used to find the worker's percentile rank in the distribution of wages. However, this information alone cannot be used to determine the mean (average) wage for the plant.

To find the mean wage, more information about the distribution is needed. One possibility is to assume that the distribution is normal with a standard deviation of $5 per hour. However, there is no justification for assuming that the mean wage is exactly halfway between the worker's wage and $0 (i.e. $7.50 per hour). Therefore, the statement about the average wage is false.

True or False: a Worker Earns $15 Per Hour at a Plant