The Economic Policy Institute periodically issues reports on wages of entry leve

Question

The Economic Policy Institute periodically issues reports on wages of entry level workers. The Institute reported that entry level wages for male college graduates were $21.68 per hour and for female college graduates were $18.80 per hour in 2011 (Economic Policy Institute website, March 30, 2012). Assume the standard deviation for male graduates is $2.30, and for female graduates it is $2.05.

Round your answers to four decimal places.

A) What is the probability that a sample of 50 male graduates will provide a sample mean within $.50 of the population mean, $21.68?

B) What is the probability that a sample of 50 female graduates will provide a sample mean within $.50 of the population mean, $18.80?

Explanation / Answer

a)here std error of mean =std deviaiton/(n)1/2 =0.3253

hence P(21.68-5.5<X<21.68+5.5)=P(-5.5/0.3253<Z<5.5/0.3253)=P(-16.9091<Z<16.9091)=1-0=1

b) similarly std error of mean for females=0.2899

hence P(18.80-5.5<X<18.80+5.5)=P(-5.5/0.2899<Z<5.5/0.2899)=P(-18.971<Z<18.971)=1-0=1

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