Professors at a Local University Earn an Average Salary of $80,000

question 114

Multiple Choice

Professors at a local university earn an average salary of $80,000 with a standard deviation of $6,000. The salary distribution is approximately bell-shaped. Because of budget limitations, it has been decided that only those whose salaries are approximately in the bottom 2.5% would get a raise. What is the maximum current salary that qualifies for the raise?

• A) It is about $58,000.
• B) It is about $62,000.
• C) It is about $68,000.
• D) It is about $74,000.

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Definitions:

Independence of Irrelevant Alternatives

A principle in decision theory stating that the preference between two options should not change because of the introduction of new alternatives.

Median Voter

A theoretical concept that suggests the outcome of a majority vote is most likely to represent the preferences of the voter who is in the middle of the political spectrum.

Majority Rule

A decision rule that selects alternatives which have a majority, that is, more than half the votes.

Median Voter Theorem

A political science theory suggesting that the outcome of a majority-vote election is most likely to represent the preferences of the median voter.