Answer to Question #266470 in Statistics and Probability for karl

Question

1. The average Pag-ibig salary loan for RFS Pharmacy, Inc. employees is ₱13,000. If the debt is normally distributed with a standard deviation of ₱3,500, find the probability that the employee owes less than ₱16,500.

Solution:

Step 1: Draw a figure and represent the area.

Step 2: Find the z value.

Step 3: Find the appropriate area.

Answer 1

Let X be a random variable that represetns the salary. Then $X ~ N(13000, 3500^2)$

Step 1:

Step 2: $P(N(13000, 3500^2)<16500)=P(13000+3500Z<16500)=P(Z<1)=0.84134$

Step 3: There is 0.8413 probability that a random employee earn less than ₱16,500