The following activities and questions relate to material covered in Chapter 6.2 Using the Normal Distribution in Introductory Business Statistics (OpenStax).

Questions

1. The average salary for a baker in Whitehorse, YT, in the year 2020, was $35,360, approximately $22/hour. Assume that the population of baker salaries in Whitehorse is normally distributed with a population mean of $35,360 and a population standard deviation of $1,500. ^[1] What is the probability of a randomly selected Whitehorse baker making more than $38,000 a year?

Solutions

1. [latex]P(X>$38000)=P\left(\dfrac{X-\mu}{\sigma}>\dfrac{38000-35360}{1500}\right)=1-P(Z<1.76)=3.92%\qquad[/latex]
2. The probability of a randomly selected Whitehorse baker making more than $38,000 a year is 3.92%.