Let X=the income of families in a slum. X∼N(μ,σ2)
Then
Z=σX−μ∼N(0,1) Given that μ=52,σ=5
i)
P(X>50)=1−P(X≤50)==1−P(Z≤550−52)=1−P(Z≤−0.4)≈≈1−0.344578≈0.655422 65.54%
ii)
P(48<x<54)=P(X<54)−P(X≤48)==P(Z<0.4)−P(Z≤−0.8)≈≈0.655422−0.211855=0.443567 44.36%
iii)
Given that n=500
P(X>50)≈0.655422
500(0.655422)≈328 Approximately 328 families in a sample of 500 families in this slum have an income of more than $ 50 per year.
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