Answer to Question #304782 in Statistics and Probability for Adrian

Question

The average Pag-ibig salary loan for RFS Pharmacy Inc. employees is Php 23,000. If the debt is normally distributed with a standard deviation of Php 2,500, find the probability that the employee owes less than Php 18,500.

Answer 1

we use z calculations as below

z(18500) = (18500 - 23000)/ 2500 = -1.8,

using normal tables, p(z< -1.81) equals 0.03515 which is the required probability.