While the average starting salary for graduates with an MBA degree varies depending on the university attended and field of emphasis, one source shows a 2015 median annual starting base salary of $100,000 (source: Claire Zillman, “Congrats, MBA grads! You’re getting a $45,000 raise,” http://fortune.com, May 19, 2015). Assuming that starting salaries are normally distributed and the standard deviation is $20,000, what is the probability that a random sample of 100 MBA graduates will have a mean starting salary of $96,000 or less?
The mean salary for graduates with an MBA degree is
A random sample considered is n=100
The standard deviation of the random sample is sd=20000
It is required to find the probability that the mean starting salary is 96000 or less.
Hence, the probability that the mean starting salary 96000 or less is 0.02275.
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