President Obama wants to provide aid to people who are having a rough time.
Year 2007 $13,182 (mean salary) = x bar
$3,550 = standard deviation
President Obama wants to give money to the lowest 15% from the rest of the population.
What income level will receive the stimulus money?
Using a financial calculator I come up with an answer that is $9,490 but I would like to know how and what the z-factor is using a normal distribution chart.
Use z = -1.04 for the lowest 15% (normal distribution chart).
Therefore, using z-score formula, solve for x.
-1.04 = (x - 13182)/3550
You will find that x = 9490
I hope this helps.