25-10-2018

Problem 1. Given that z is a standard normal random variable, find z for each situation.

• 1. The area to the left of z is .9750.

  2. The area between 0 and z is .4750.

  3. The area to the left of z is .7291.

  4. The area to the right of z is .1314.

  5. The area to the left of z is .6700.

  6. The area to the right of z is .3300.

Problem 2. Assume that the mean hourly pay rate for financial managers is $32, and the standard deviation is $2. Further assume that pay rates are normally distributed.

• 1. What is the probability a financial manager earns between $30 and $35 per hour?

  2. How high must the hourly rate be to put a financial manager in the top 10% with respect to pay?

  3. For a randomly selected financial manager, what is the probability the manager earned less than $28 per hour?