Question

Suppose the annual employer 401(k) cost per participant is normally distributed with a standard deviation of $625, but the mean is unknown.

(a) If 73.89% of such costs are greater than $1,700, what is the mean annual employer 401(k) cost per participant?
(b) Suppose the mean annual employer 401(k) cost per participant is $2,258 and the standard deviation is $625. If such costs are normally distributed, 31.56% of the costs are greater than what value?

(Round values of z to 2 decimal places.)

(a) μ =

(b) x =

Answer 1

Hence we get-

a)   = 1300.026

b) x = 2558. 0241 (rounded to 4 decimal places)

Hope this will help you. Thank you :)