STAT 507 Lecture 5: Sept 20

Business week conducted a survey of graduates from 30 top MBAprograms (Business Week, September September 22, 2003). Thesurvey found that the average annual salary for male and femalegraduates 10 years after graduation was $168,000 and $17,000respectively. Assume the population standard deviation forthe male graduates is $40,000, and for the female graduates it is$25,000.

a. What is the probability that a simple random sampleof 100 male graduates will provide a sample mean more than$4,000 below the population mean (to 4 decimals).