Suppose That, on Average, Electricians Earn Approximately µ = $54,000

question 42

Multiple Choice

Suppose that, on average, electricians earn approximately µ = $54,000 per year in the United States. Assume that the distribution for electricians' yearly earnings is normally distributed and that the standard deviation is σ = $12,000. What is the probability that the average salary of four randomly selected electricians is less than $50,000?

• A) 0.2525
• B) 0.3707
• C) 0.6293
• D) 0.7486

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Definitions:

After-tax Rate

The rate of return on an investment after accounting for taxes, giving a more accurate reflection of the actual take-home returns.

Marginal Tax Rate

The percentage of tax applied to your income for each tax bracket in which you qualify, essentially the tax rate you would pay on one additional dollar of income.

Weighted Average Cost

Weighted average cost often refers to the weighted average cost of capital (WACC), a calculation of a firm's cost of capital in which each category of capital is proportionately weighted.