The Average Starting Salary of This Year's Graduates of a Large

question 169

Short Answer

The average starting salary of this year's graduates of a large university (LU) is $25,000 with a standard deviation of $5,000. Furthermore, it is known that the starting salaries are normally distributed.
a.What is the probability that a randomly selected LU graduate will have a starting salary of at least $31,000?
b.Individuals with starting salaries of less than $12,200 receive a low income tax break. What percentage of the graduates will receive the tax break?
c.What are the minimum and the maximum starting salaries of the middle 95% of the LU graduates?
d.If 68 of the recent graduates have salaries of at least $35,600, how many students graduated this year from this university?

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Definitions:

External Benefit

A positive effect or advantage that results from a product or service's use, extending beyond the direct buyer or consumer to others not involved in the transaction.

Output

The cumulative production of goods and services by an economy over a given time frame.

External Cost

Costs of a transaction or activity that affect people other than those directly involved in the transaction, often not reflected in the market prices.

Social Cost

The total cost to society of an action, including both private costs borne by individuals and external costs absorbed by others.