# Normal probability

The annual commissions earned by sales representatives of Machine Products Inc., a manufacturer

of light machinery, follow the normal distribution. The mean yearly amount earned is

$40,000 and the standard deviation is $5,000.

a. What percent of the sales representatives earn more than $42,000 per year?

b. What percent of the sales representatives earn between $32,000 and $42,000?

c. What percent of the sales representatives earn between $32,000 and $35,000?

d. The sales manager wants to award the sales representatives who earn the largest commissions

a bonus of $1,000. He can award a bonus to 20 percent of the representatives. What is the cutoff

point between those who earn a bonus and those who do not?

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#### Solution Summary

The solution provides step by step method for the calculation of probability based on Z score . Formula for the calculation and Interpretations of the results are also included.