Question

At a recent job fair, Intel boasted that they paid master's graduates more than 90% of all

employers. If we interpret their claim as a percentile, what hourly wage must they offer
employees with master's degrees?

Answer 1

Complete Question

A recent study found that hourly wages earned by employees possessing a master's degree are distributed normally with a mean of $27.50 and standard deviation of $3.50

At a recent job fair, Intel boasted that they paid master's graduates more than 90% of all

employers. If we interpret their claim as a percentile, what hourly wage must they offer employees with master's degrees?

Answer:

The value is
`x = \$31.986`

Explanation:

From the question we are told that they paid master's graduates more than 90% of all

Generally from the z-table the z-score for 90% is
`z = 1.282`

This z-score can be mathematically represented as

`z = (x - \mu )/(\sigma)`

Here x is the hourly wage they offer employees with master's degrees

substituting $27.50 for
`\mu` and $3.50 for
`\sigma` we have

`1.282 =  (x - 27.50 )/(3.50)`

=>
`x = \$31.986`