SOLUTION: The government would like to conduct a subsidy program for the lowest 5 percent of the families in terms of income. The government gathered data about family income and it's found

Question 1202140: The government would like to conduct a subsidy program for the lowest 5 percent of the families in terms of income. The government gathered data about family income and it's found to be normally distributed with a mean of Php 130,000 and a standard deviation of Php 50,000. What is the cutoff income for the government program?
Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
population mean = 130,000
population standard deviation = 50,000
z = (x - m) / s
z is he z-score
x is he raw score
m is the mean
s is the standard deviation
5% alpha on the left side of the normal distribution curve yields a z-score of -1.645.
z-score formula becomes -1.645 = (x - 130,000) / 50,000.
solve for x to get x = -1.645 * 50,000 + 130,000 = 47,750.
that's the cutoff income.
families with income less than that would get the subsidy.
there was some intermediate roundng with the z-score.
a more exact number would be 47,757.3187.

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