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QUESTION:
At a big company the following salary information is know: μ = $80,000 and σ = $5,000. What is the salary at a z-score of -1?
  
  
  
  

ANSWER:

To find the salary corresponding to a z-score of −1, use the z-score formula rearranged to solve for the raw score XX:

X=μ+(z×σ)X = \mu + (z \times \sigma)

Where:

  • μ=80,000\mu = 80{,}000 (mean salary)

  • σ=5,000\sigma = 5{,}000 (standard deviation)

  • z=1z = -1

X=80,000+(1×5,000)X = 80{,}000 + (-1 \times 5{,}000) X=80,0005,000=75,000X = 80{,}000 - 5{,}000 = 75{,}000

Answer: The salary at a z-score of −1 is $75,000.

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