1.

The starting annual salaries of newly qualified chartered accountants (CA՚s) in Malaysia follow a normal distribution with a mean of RM180,000 and a standard deviation of RM10,000. What is the probability that a randomly selected newly qualified CA will earn between RM185,000 and RM200,000 per annum?

Answer»

\(X \sim N (18000, 10000)\)

\(\frac{X - 180000}{10000} \sim N(0,1)\)

\(P(185000< X < 200000) = P\left(\frac{185000-180000}{10000} < \frac{X - \mu}\sigma < \frac{200000 -180000}{10000}\right)\)

\(= P\left(\frac 12 < \frac{X - \mu}\sigma < 2\right)\)

\(= P\left(\frac{x - \mu}\sigma \le 2\right) - P\left(\frac{x - \mu}\sigma \le \frac12\right)\)

\(= 0.9772 - 0.6915\)

\(= 0.2857\)

The required probability be 0.2857.



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