Question
1. The annual sales commissions earned by sales representatives of a manufacturer of light machinery follow the normal probability distribution. The mean yearly amount earned
1. The annual sales commissions earned by sales representatives of a manufacturer of light machinery
follow the normal probability distribution. The mean yearly amount earned is $40,000 and the standard
deviation us $5,000.
a. What percent of the sales representatives earn more than $43,000 per year?
b. What percent of the sales representatives earn between $37,000 and $43,000?
c. The sales manager wants to award a bonus of $1,000 to the top 20% sales representatives who earn the largest commissions. What is the cut-off point between those who earn a bonus and those who do not?
2. The average cost per night of a hotel room in New York City is $275. Assume this estimate is based on
a sample of 45 hotels and that the sample standard deviation is $60.
a. With 95% confidence, what is the margin of error?
b. What is the 95% confidence interval estimate of the population mean?
c. What is the 99% confidence interval estimate of the population mean?
d. Explain what happens to the margin of error and the confidence interval as the confidence level is increased?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started