HI Priscilla,
This problem is very similar to the one you posted earlier. It also uses our classic statistics equation z=(x-mu/sigma). I will again break this down to part a and part b,
z=z-score for percentile we are looking for
x=value we are looking for
mu=population mean
sigma=population standard deviation
A) For this problem, we are asked for the 90th percentile, so we convert to the decimal 0.90 and look for this value in the interior of the z-table, On mine, the closest value is 0.8997, which aligns with a z-score of 1.28. Let’s break down our variables for the equation:
z=1.28
x=x, salary we are looking for
mu=42000
sigma=6400
Substituting:
1.28=(x-42000)/6400
8192=x-42000
x=50192
B) A couple additional formulas here:
mu2=n*mu1
sigma2=sqrt(n*sigma12)
Once we compute these, we can again plug into our classic. Proceeding:
n=10, your sample size
mu1=42000
sigma1=6400
mu2=10*42000
mu2=420000
sigma2=sqrt(10*64002)
sigma2=20239
Now, we can substitute these values back into our classic. Remember that we still want a 90th percentile, so z remains the same:
z=1.28
x=x, salary sum we are looking for
mu2=420000
sigma2=20239
1.28=(x-420000)/20239
25905=x-420000
x=445905
I hope this helps. See if there are any more percentile problems for normal distributions like this in your book. Work a couple with my examples as a guide. Enjoy if possible!