Exhibit 6-4
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.
-Refer to Exhibit 6-4. What is the probability that a randomly selected individual with an MBA degree will get a starting salary of at least $30,000?
A)0.4772
B)0.9772
C)0.0228
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 $30,000, we need to find the area under the normal distribution curve to the right of $30,000.

Using the z-score formula: 
z = (x - μ) / σ 
where x = 30,000, μ = 40,000, and σ = 5,000

z = (30,000 - 40,000) / 5,000 = -2

Looking up the z-score in the standard normal distribution table, we find the probability to the right of z = -2 is 0.9772. Therefore, the probability that a randomly selected individual with an MBA degree will get a starting salary of at least $30,000 is 0.9772 or 97.72%.

The best choice is B.

Exhibit 6-4 The Starting Salaries of Individuals with an MBA Degree Are