According to a survey, the average base salary for women in sales is higher than the average base salary for men. The average base salary for women is $5800/month, and the average base salary for men is $5600/month. Assume monthly salaries are normally distributed with a standard deviation of $500 for both men and women. Further assume salaries are identical and independent across months. How much would a woman have to make in a year to have a higher salary than 99% of her male counterparts? Please round to an integer number.
Inverse Normal Distribution
The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.
Mean, Median, Mode
It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.
Z-Scores
A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.
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