28.03.2023 - 02:20

Someone has two job offers and must decide which to accept. The job in City A pays $47,000 and the average cost of living there is $65,000 with a standard deviation of $15,000. The job in City B pays $70,000 but the average cost of living there is $85,000

Someone has two job offers and must decide which to accept. The job in City A pays $47,000 and the average cost of living there is $65,000 with a standard deviation of $15,000. The job in City B pays $70,000 but the average cost of living there is $85,000 with a standard deviation of $20,000.

Assuming salaries are normally distributed, which is the better job offer? Why?

Answers (1)
  • djpinoccio
    April 7, 2023 в 05:03

    To determine which job offer is better, we need to compare the salaries in each city relative to the cost of living in that city.

    First, let's calculate the z-scores for each job offer:

    For the job in City A: z = (x - mu) / sigma z = (47,000 - 65,000) / 15,000 z = -1.2

    For the job in City B: z = (x - mu) / sigma z = (70,000 - 85,000) / 20,000 z = -0.75

    We can use a z-score table or calculator to determine the probability of getting a salary at or below these z-scores. The probability of getting a salary at or below -1.2 is 0.1151, and the probability of getting a salary at or below -0.75 is 0.2266.

    So, the job in City B has a higher salary and a higher probability of getting a higher salary relative to the cost of living in that city. Therefore, the job in City B is the better job offer. However, it's important to note that this analysis only takes into account salary and cost of living and doesn't consider other factors such as job responsibilities, work-life balance, and personal preferences.

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