Assuming salaries are normally distributed If the average sa

Assuming salaries are normally distributed. If the average salary for MBA grads is $100,000 and the standard deviation is $10,000. What percent of students make less than $80,000?

Solution

Normal Distribution
Mean ( u ) =100000
Standard Deviation ( sd )=10000
Normal Distribution = Z= X- u / sd ~ N(0,1)                  
P(X < 80000) = (80000-100000)/10000
= -20000/10000= -2
= P ( Z <-2) From Standard Normal Table
= 0.0228