Question

Major league baseball salaries averaged $3.26 million with a standard deviation of $1.2 million in a recent year. suppose a sample of 100 major league players was taken. find the approximate probability that the mean salary of the 100 players exceeded $4.0 million.

Answer 1

Given:
μ = $3.26 million, averaged salary
σ = $1.2 million, standard deviation
n = 100, sample size.

Let x = random test value
We want to determine P(x>4).

Calculate z-score.
z = (x - μ)/ (σ/√n) = (4 - 3.26)/(1.2/10) = 6.1667

From standard tables,
P(z<6.1667) = 1
The area under the distribution curve = 1.
Therefore
P(z>6.1667) = 1 - P(z<=6.1667) = 1 - 1 = 0

Answer: The probability is 0.