document.write( "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? \n" ); document.write( "
Algebra.Com's Answer #836778 by Theo(13342)\"\" \"About 
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population mean = 130,000
\n" ); document.write( "population standard deviation = 50,000
\n" ); document.write( "z = (x - m) / s
\n" ); document.write( "z is he z-score
\n" ); document.write( "x is he raw score
\n" ); document.write( "m is the mean
\n" ); document.write( "s is the standard deviation
\n" ); document.write( "5% alpha on the left side of the normal distribution curve yields a z-score of -1.645.
\n" ); document.write( "z-score formula becomes -1.645 = (x - 130,000) / 50,000.
\n" ); document.write( "solve for x to get x = -1.645 * 50,000 + 130,000 = 47,750.
\n" ); document.write( "that's the cutoff income.
\n" ); document.write( "families with income less than that would get the subsidy.
\n" ); document.write( "there was some intermediate roundng with the z-score.
\n" ); document.write( "a more exact number would be 47,757.3187.\r
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