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Postby pooja923 » Thu May 12, 2016 1:07 pm

A grant writer for a local school district is trying to justify an application for funding an after school program for low income families.Census information for the school district shows an average household income of $26,200 with a standard deviation of $8,960. Assuming that the household income is normally distributed, what is the percentage of households in the school district with incomes of less than $12,000?
    1. 15.87%.
    2. 9.92%.
    3. 5.71%.

How to solve this?

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Postby edupristine » Sat May 14, 2016 6:35 am

Hi Pooja

the correct answer is %.71%

as Z= ($12000-$26000)/8960
= -1.58
from the table of area under the standard normal curve , 5.71%, of the observations are more than 1.58 standard deviations below the mean

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