Professors at a local university earn an average salary of $80,000 with a standard deviation of $6,000. The salary distribution is approximately bell-shaped. Because of budget limitations, it has been decided that only those whose salaries are approximately in the bottom 2.5% would get a raise. What is the maximum current salary that qualifies for the raise?
A) It is about $58,000.
B) It is about $62,000.
C) It is about $68,000.
D) It is about $74,000.

Question

Quizplus · Accepted Answer

In a normal distribution, the bottom 2.5% corresponds to approximately 1.96 standard deviations below the mean. Calculating: $80,000 - (1.96 * $6,000) = $68,240$, which is closest to $68,000.

Professors at a Local University Earn an Average Salary of $80,000