A Worker Earns $15 Per Hour at a Plant in China

question 132

True/False

A worker earns $15 per hour at a plant in China 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:

Incorporates

The act of forming a new corporation by filing required documents with the state, or integrating components into a whole.

Business

A business is an organization or enterprising entity engaged in commercial, industrial, or professional activities with the aim of earning profits.

Nonbinding Preincorporation Contracts

Agreements made on behalf of a corporation before it is legally formed, which typically do not hold the corporation responsible once it is established.

Personal Liability

The state of being legally responsible for the debts or actions of oneself, not shielded by corporate or other legal entities.