According to Money magazine, Maryland had the highest median annual household income of any state in 2018 at $75,847.† Assume that annual household income in Maryland follows a normal distribution with a median of $75,847 and standard deviation of $33,800. (a) What is the annual income (in $) of a household in the ninety-first percentile of annual household income in Maryland? (Round your answer to the nearest cent.)
Continuous Probability Distributions
Probability distributions are of two types, which are continuous probability distributions and discrete probability distributions. A continuous probability distribution contains an infinite number of values. For example, if time is infinite: you could count from 0 to a trillion seconds, billion seconds, so on indefinitely. A discrete probability distribution consists of only a countable set of possible values.
Normal Distribution
Suppose we had to design a bathroom weighing scale, how would we decide what should be the range of the weighing machine? Would we take the highest recorded human weight in history and use that as the upper limit for our weighing scale? This may not be a great idea as the sensitivity of the scale would get reduced if the range is too large. At the same time, if we keep the upper limit too low, it may not be usable for a large percentage of the population!
According to Money magazine, Maryland had the highest median annual household income of any state in 2018 at $75,847.† Assume that annual household income in Maryland follows a
(a) What is the annual income (in $) of a household in the ninety-first percentile of annual household income in Maryland? (Round your answer to the nearest cent.)
Consider a multiple-choice examination with 50 questions. Each question has four possible answers. Assume that a student who has done the homework and attended lectures has a 65% chance of answering any question correctly. (Round your answers to two decimal places.)
(b) Assume that a student has not attended class and has not done the homework for the course. Furthermore, assume that the student will simply guess at the answer to each question. What is the probability that this student will answer 28 or more questions correctly and pass the examination? Use the normal approximation of the binomial distribution to answer this question.
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