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

question 28

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)About $58,000
• B)About $62,000.
• C)About $68,000.
• D)About $74,000.

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Definitions:

Outperform

A term used in the finance industry to describe an investment that is expected to perform better than the market average or a benchmark index.

Rational Traders

Investors who make decisions based on logic, available information, and analysis rather than emotion or guesswork.

Arbitrage

The practice of taking advantage of a price difference between two or more markets, buying low and selling high to profit from the temporary difference.

Overconfidence

A cognitive bias characterized by an individual's unjustifiable faith in their own intuitive reasoning, judgments, or cognitive abilities.