A Worker Earns $15 Per Hour at a Plant and Is

question 153

True/False

A worker earns $15 per hour at a plant and is told that only 2.5% of all workers make a higher wage. If the wage is assumed to be normally distributed and the standard deviation of wage rates is
$5 per hour, the average wage for the plant is $7.50 per hour.

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Definitions:

Economic Models

Simplified representations of complex economic processes, using mathematical techniques and assumptions to understand and predict economic behavior and outcomes.

Economic Actors

Individuals, households, businesses, and governments that make decisions about the allocation of resources and engage in the production, distribution, and consumption of goods and services.

Psychology of Human Behavior

The study of individuals' thoughts, feelings, and behaviors and how they are influenced by physical, mental, social, and environmental factors.

Economics

The social science that studies the production, distribution, and consumption of goods and services, and how individuals, businesses, and governments make decisions on allocating resources.