Question 1109558: Management at Gordon Electronics is considering adopting a bonus system to increase
production. One suggestion is to pay a bonus on the highest 5% of production based on
past experience. Past records indicate weekly production follows the normal distribution.
The mean of this distribution is 4,000 units per week and the standard deviation is 60 units
per week. If the bonus is paid on the upper 5% of production, the bonus will be paid on
how many units or more?
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! The mean of this distribution is 4,000 units per week and the standard deviation is 60 units per week. If the bonus is paid on the upper 5% of production, the bonus will be paid on how many units or more?
-----------
Find the z value with a right tail of 5%
invNorm(0.95) = 1.645
----
Find the corresponding bonus value::
b = 1.645*60+4000 = 4098.69
----------
Cheers,
Stan H.
--------------
|
|
|
