Question

The annual salaries of all employees at a financial company are normally distributed with a mean mc014-1.jpg = $34,000 and a standard deviation mc014-2.jpg = $4,000. What is the z-score of a company employee who makes an annual salary of $28,000?

Answer 1

Z-score is computed by the equation below,
z-score = (x - μ) / σ
where x is the data point, μ is the mean and σ is the standard deviation. Substituting the known values,
z-score = (28,000 - 34,000) / $4000
z-score = -1.5