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Statistic Business problem with the poverty level

Business & Finance
Tutor: None Selected Time limit: 1 Day

Suppose Eastasia’s government now reports that their populations mean disposable household income is $900 per month, with a standard deviation of $100.  Oceana’s population mean is $1000, with a standard deviation of $300.
Each country defines the poverty level to be $750.  If you assume that income has a normal distribution, find the probability that a household’s income is below the poverty level


Mar 21st, 2015

EASTASIA=population mean is 900 std dev 100

p(x<750)= 

find Z value we read from table= (750-900)/100=-1.5

hence P(x<750)=P(Z<-1.5)

from table answer=0.0668 or 6.7%

OCEAN=Popu mean is 1000 std dev 300

P(x<750)=(750-1000)/300=-0.83

from table answer=0.2033 or 20.3%

Mar 21st, 2015

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Mar 21st, 2015
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Mar 21st, 2015
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