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Salaries for Actuaries The average salary for graduates
Chapter 6, Problem 6RE(choose chapter or problem)
Problem 6RE
Salaries for Actuaries The average salary for graduates entering the actuarial field is $40,000. If the salaries are normally distributed with a standard deviation of $5000, find the probability that
a. An individual graduate will have a salary over $45,000.
b. A group of nine graduates will have a group average over $45,000.
Questions & Answers
QUESTION:
Problem 6RE
Salaries for Actuaries The average salary for graduates entering the actuarial field is $40,000. If the salaries are normally distributed with a standard deviation of $5000, find the probability that
a. An individual graduate will have a salary over $45,000.
b. A group of nine graduates will have a group average over $45,000.
ANSWER:
Solution :
Step 1 of 1:
From the given information we know that mean= $40.000 and the standard deviation
= $5000.
Our goal is :
a). We need to find the probability that an individual graduate salary is $45,000.
b). We need to find the probability that a group of 9 graduates will have a group average over $45,000.
a). Given an individual graduate salary is $45,000.
The z-score is the value decreased by the mean, divided by the standard deviation.
The z-score formula is
z =
We know that x=$45,000, = $40.000 and
= $5000.