Question

Salary for bank tellers: In Laramie it's $

N(7.27, 0.9²)

/hour. In Denver it's $

N(7.48, 1.2²)

/hour. A teller earning $9.31 in Laramie will be transferred to Denver. What salary should he expect there?

Answer 1

first, we need to find the relation equation that relates Salary for bank tellers in Laramie and in Denver

The salary for bank tellers in Laramie will be considered as X variable and Salary for bank tellers in Denver will be considered as Y variable.

Assuming that there is a perfect correlation between the two variable

for X=9.31

He should expect a salary of $10.19