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QUESTION:
At a big company the following salary information is known: μ = $80,000 and σ = $5,000. How much money does Miguel make if he is half a standard deviation below the mean?
Group of answer choices

ANSWER:

To find Miguel’s salary when he is half a standard deviation below the mean, use the z-score formula in reverse:

X=μ+(z×σ)X = \mu + (z \times \sigma)

Where:

  • μ=80,000\mu = 80{,}000

  • σ=5,000\sigma = 5{,}000

  • z=0.5z = -0.5

X=80,000+(0.5×5,000)X = 80{,}000 + (-0.5 \times 5{,}000) X=80,0002,500X = 80{,}000 - 2{,}500 X=77,500X = 77{,}500

Miguel makes $77,500.

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