a recent study found that hourly wages eaned by employees po

a recent study found that hourly wages eaned by employees possesing a Master\'s degree are distributed normally with a mean of $27.50 and a standard deviation of $3.50.

2- At a recent job fair, Intel boasted that they paid Master\'s graduates more than 90% of all employers. If we interpret thier claim as a precentile, what hourly wage must they offer employees with Master\'s degrees?

Solution

Mean = 27.50$

Standard Deviation = 3.50$

We need to find the Z value, in order to find the percentile for Haily\'s earning

Z = (X - mean)/sigma

Z value is equal 1.2816 when the score is 90% percentile

Now substituting the value of Z, mean and sigma to evaluate the value of x

1.2816 = (X - 27.50)/3.50

X = 27.50 + 3.50 * 1.2816

X = 31.9856$

Hence the intel pays his MS graduates at the rate of 31.99$