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Z-score Solution for Statistics Students

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Management is considering adopting a bonus system to increase production. One suggestion is to pay a bonus on the highest 5 percent of production based on past experience. Past records indicate that, on the average, 4,000 units of a small assembly are produced during a week. The distribution of the weekly production is approximately normally distributed with a standard deviation of 60 units. If the bonus is paid on the upper 5 percent of production, the bonus will be paid on how many units or more?

Choose one answer below:
A) 6255
B) 5120
C) 3196
D) 4099

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Hi there,

To answer this question, you need to consider the z score formula. The upper 5 percent of production is the same ...

Solution Summary

A complete worked through solution, including calculations, for a specific statistics problem.

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Examples of z-score calculations for statistics students

1. The weight of cans of fruit is normally distributed with a mean of 1,000 grams and a standard deviation of 50 grams. What percent of the cans weigh 860 grams or less?
a) 0.0100
b) 0.8400
c) 0.0026
d) 0.0001

2). The mean amount spent by a family of four on food per month is $500 with a standard deviation of $75. Assuming that the food costs are normally distributed, what is the probability that a family spends less than $410 per month?
A) 0.2158
B) 0.8750
C) 0.0362
D) 0.1151

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