4. Suppose salespersons at a very large firm earn an average of $40,000 per year

Question

4.      Suppose salespersons at a very large firm earn an average of $40,000      per year, with a standard deviation of $6,000.

              a.       If one salesperson earns $40,000, can it be said that he or she                      earns more than half of all the company’s salespersons?

              b.      If a sample of n = 64 salespersons is selected, what is the                                     probability that the mean of the sample will exceed $41,200?

              c.       What part of this problem requires the Central Limit Theorem?

Explanation / Answer

a. No it can't be said that he or she earns more than half of all the company's salepersons as average means total divided by number of observations whether numbers can be arranged in different ways.

b. It can be find using central limit theorem.

c. Part b will need central limit theorem.

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