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The salaries of physicians in a certain specialty are approximately normally distributed. If 25percent of these

physicians earn less than \(180,000and 25percent earn more than \)320,000, approximately what fraction earn

(a) less than \(200,000?

(b) between \)280,000and$320,000?

Short Answer

Expert verified

(a) The fraction that earn less than $200,000is0.3149.

(b) The fraction that earn between $280,000and $320,000is 0.1348.

Step by step solution

01

Part (a) Step 1. Given information.

Here, it is given that the salaries of physicians in a certain specialty are approximately normally distributed.

25%of these physicians earn <$180,000and

25%of these physicians earn>$320,000

02

Part (a) Step 2. Find the value of μ and σ.

Let Xbe the random variable that represents the salary in thousand dollars.

So,

localid="1646737232885" P(X<180)=0.25PX-μσ<180-μσ=0.25P(Z<z)=0.25

From standard normal table values, the critical value of zfor the one tail test and the corresponding cumulative area of 0.25is -0.675.

So,

localid="1646736797891" z=-0.675180-μσ=-0.675180=μ-0.675σ...................(1)

and

localid="1646736786547" P(X>320)=0.25PX-μσ>320-μσ=0.251-P(Z≤z)=0.25P(Z≤z)=0.75

From standard normal table values, the critical value of zfor the one tail test and the corresponding cumulative area of 0.75is 0.675.

So,

z=0.675320-μσ=-0.675320=μ+0.675σ...................(2)

From equation 1and2, we get

2μ=500∴μ=250

Substituting the value of μin equation 1, we get

180=250-0.675σ0.675σ=70∴σ=103.704

03

Part (a) Step 3. Calculate the fraction of physicians that earn less than $200,000.

P(X<200)=PX-μσ<200-μσ=Pz<200-250103.704=Pz<-0.48=0.3149

Therefore, the fraction of physicians that earn less than$200,000is0.3149.

04

Part (b) Step 1. Calculate the fraction of physicians that earn between $280,000 and $320,000.

P(280<X<320)=P280-μσ<X-μσ<320-μσ=P280-250103.704<z<200-250103.704=P0.29<z<0.67=Pz<0.67-P(z<0.29)=0.7486-0.6138=0.1348=0.3149

Therefore, the fraction of physicians that earn between$280,000and$320,000is0.3149.

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