The mean annual salary for intermediate level executives is about $74000 per year with a standard deviation of $2500. A random sample of 36 intermediate level executives is selected. What is the probability that the mean annual salary of the sample is between $71000 and $73500?

11.51% probability that the mean annual salary of the sample is between $71000 and $73500

Step-by-step explanation:

To solve this question, we need to understand the normal probability distribution and the central limit theorem.

Normal probability distribution

Problems of normally distributed samples are solved using the z-score formula.

In a set with mean and standard deviation , the zscore of a measure X is given by:

The Z-score measures how many standard deviations the measure is from the mean. After finding the Z-score, we look at the z-score table and find the p-value associated with this z-score. This p-value is the probability that the value of the measure is smaller than X, that is, the percentile of X. Subtracting 1 by the pvalue, we get the probability that the value of the measure is greater than X.

Central Limit Theorem

The Central Limit Theorem estabilishes that, for a normally distributed random variable X, with mean and standard deviation , the sampling distribution of the sample means with size n can be approximated to a normal distribution with mean and standard deviation .

For a skewed variable, the Central Limit Theorem can also be applied, as long as n is at least 30.

In this question, we have that:

What is the probability that the mean annual salary of the sample is between $71000 and $73500?

This is the pvalue of Z when X = 73500 subtracted by the pvalue of Z when X = 71000. So

X = 73500

By the Central Limit Theorem

has a pvalue of 0.1151

X = 71000

has a pvalue of 0.

0.1151 - 0 = 0.1151

11.51% probability that the mean annual salary of the sample is between $71000 and $73500

d. 24+-0.114

step-by-step explanation:

the question requires us to calculate the approximate 95% confidence interval for the mean number of ounces of ketchup per bottle in the sample given the following statistics;

sample mean = 24

standard deviation, σ = 0.4

sample size , n = 49

the confidence interval for a population mean is calculated using the formula;

sample mean ± z-score*(σ/sqrt(n))

the z-score associated with a 95% confidence interval, from the standard normal tables, is;

1.96

substituting these values into the formula;

24 ± 1.96*(0.4/7)

= 24 ± 0.112

from the alternatives given, choice d is closest to the above expression;