SOLUTION: You are applying for jobs at two companies. Company C offers starting salaries with μ = $39,000 and σ = $4000. Company D offers starting salaries with μ = $39,000 an
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Question 1062164: You are applying for jobs at two companies. Company C offers starting salaries with μ = $39,000 and σ = $4000. Company D offers starting salaries with μ = $39,000 and σ = $1500. From which company are you more likely to get an offer of $42,000 or more? Explain your reasoning. Answer by rothauserc(4718) (Show Source):
You can put this solution on YOUR website! We use a normal distribution and calculate the z-score for each company
:
z-score for Company C = (42000 - 39000) / 4000 = 0.75
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z-score for Company D = (42000 - 39000) / 1500 = 2.00
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We consult z-tables for Probability(Pr)
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Pr ( X > 42000 ) for C = 1 - Pr ( X < 42000 ) = 1 - 0.7734 = 0.2266
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Pr ( X > 42000 ) for D = 1 - Pr ( X < 42000 ) = 1 - 0.9772 = 0.0228
:
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The probability is greater with Company C that
you will get an offer of $42000 or greater
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