Government data indicate that the mean hourly wage for manufacturing workers in the United States is $20.10

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Government data indicate that the mean hourly wage for manufacturing workers in the United States is $20.10 (Bureau of Labor Statistics, January 2016). Suppose the distribution of manufacturing wage rates nationwide can be approximated by a normal distribution with standard deviation $1.25 per hour. The first manufacturing firm contacted by a particular worker seeking a new job pays $21.40 per hour.

a. If the worker were to undertake a nationwide job search, approximately what proportion of the wage rates would be greater than $21.40 per hour?

b. If the worker were to randomly select a U.S. manufacturing firm, what is the probability the firm would pay more than $21.40 per hour?

c. The population median, call it h, of a continuous random variable x is the value such that P(x ≥ η) = P(x ≤ η) = .5-that is, the median is the value h such that half the area under the probability distribution lies above h and half lies below it. Find the median of the random variable corresponding to the wage rate and compare it with the mean wage rate.

Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
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Statistics For Business And Economics

ISBN: 9780134506593

13th Edition

Authors: James T. McClave, P. George Benson, Terry Sincich

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