Calculating Percentiles for Salesperson Commissions in the Machinery Industry

What Percent of Salespersons Earn Between $32,000 and $42,000?

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Question

The annual commissions per salesperson employed by a manufacturer of light machinery averaged $40,000 with a standard deviation of $5,000. What percent of the sales persons earn between $32,000 and $42,000?

Answers

Explanations

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Explanation

z = (x - u)/sigma. z1 = (32000 - 40000)/5000 = -1.6. z2 = (42000 - 40000)/5000 = 0.4. The area under the curve for the respective z values are 0.4452 and 0.1554.

Since the earnings are on the opposite sides of the mean, we add them up 0.4452 + 0.1554 = 0.6006.