# Determining Employee Expenditure Using Probability

If you are asked to calculate the probability that a randomly selected employee's expenditure is exactly $5, what will be your answer? Why? Will your answer be the same for any individual expenditure? Assume that population of all employee expenditures follow a normal distribution.

Could you set up an equation to find the z score, and with that identify the probability? Please show calculations.

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#### Solution Preview

The probability that a randomly selected employee's expenditure is exactly $5 will be 0, and yes, my answer would be the same (the probability would be 0) for any individual (specific) expenditure (i.e., if you asked the exact same question but replaced the $5 expenditure amount with $8 or $12 or any other specific dollar amount the probability that a randomly selected employee's expenditure would be that exact amount would be 0). There are two ways to explain this: (1) the definition of how to calculate a probability like P[1.27<Z<2.25] involves an integral whose lower limit is 1.27 and whose upper limit is 2.25. Then a ...

#### Solution Summary

The expert determines employee expenditures using probability. The individual expenditures are determined.