Question

Use the normal distribution to compute probability with technology - Calculator Question Suppose that the annual household income in a region is normally distributed with mean $25,000 and standard deviation $6,000. If the poverty level for the region is at or below $12,000, what percentage of the population lives in poverty? • Round your answer to two decimal places.

Answer 1

0.02

Explanation:

Given a normal distribution :

Mean income (m) = 25000

Standard deviation of income (s) = 6000

X ≥ 12000

Using the relation to fund the standardized score :

Zscore =(x - m) / s

Zscore = ( 12000 - 25000) / 6000

Zscore = -13000 / 6000

Zscore = - 2.167

Using a z probability calculator :

P(Z ≤ - 2.167) = 0.015117

= 0.02