A survey was conducted of graduates from 30 MBA programs. On the basis of the survey, assume that the mean annual salary for male and female graduates 10 years after graduation is $168,000 and $117,000, respectively. Assume the standard deviation for the male graduates is $40,000, and for the female graduates it is $25,000. Question 1: What is the probability that a simple random sample of 40 male graduates will provide a sample mean within $10,000 of the population mean, $168,000? Question 2: What is the probability that a simple random sample of 40 female graduates will provide a sample mean within $10,000 of the population mean of $117,000?

tamnicufl

tamnicufl

Answered question

2022-09-18

A survey was conducted of graduates from 30 MBA programs. On the basis of the survey, assume that the mean annual salary for male and female graduates 10 years after graduation is $168,000 and $117,000, respectively. Assume the standard deviation for the male graduates is $40,000, and for the female graduates it is $25,000.
Question 1: What is the probability that a simple random sample of 40 male graduates will provide a sample mean within $10,000 of the population mean, $168,000?
Question 2: What is the probability that a simple random sample of 40 female graduates will provide a sample mean within $10,000 of the population mean of $117,000?

Answer & Explanation

Jamari Morgan

Jamari Morgan

Beginner2022-09-19Added 10 answers

First thing to note is the distribution of the sample mean. If the sample mean is denoted by E ( X ) = μ and V ( X ) = σ 2 then X ¯ N ( μ , σ 2 / n ).
For this problem let X represent the salary for a male and Y the salary for a female. Let k=10000, n=40.
V ( X ) = σ M 2 = 40000 2
V ( Y ) = σ F 2 = 25000 2
Then in order to do problem 1 you basically want to calculate:
Pr { X [ μ M k , μ M + k ] } = Pr { X μ M + k } Pr { X μ M k } = Φ ( μ M + k μ M σ M / n ) Φ ( μ M k μ M σ M / n ) = 2 Φ ( k σ M / n ) 1
Just replace in the numbers and you'll find your answer. Same exact thing for F just different numbers.

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