Nominal income refers to an income value that is not adjusted for inflation. Real income adjusts the nominal value for the rate of inflation. Real income per capita is considered a good measure of the buying power of an individual in a particular area because it adjusts for both the number of people in the area and the relative inflation of the area. According to Forbes magazine, the state with the highest annual real income per capita in 2020 is Connecticut with a real per capita income of $68,533. Suppose that the annual real income of individuals in Connecticut follows a normal distribution with a mean of $68,533 and standard deviation of $23,480. (a) What is the probability that an individual in Connecticut has an annual real income of $54,000 or more? (Round your answer to four decimal places.) (b) What is the probability that an individual in Connecticut has an annual real income of $29,000 or less? (Round your answer to four decimal places.) (c) What is the probability that an individual in Connecticut has an annual real income between $56,000 and $76,000? (Round your answer to four decimal places.) (d) What is the annual real income of a person (in dollars) in the 99th percentile of annual real income in Connecticut? (Round your answer to the nearest dollar.)

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Nominal income refers to an income value that is not adjusted for inflation. Real income adjusts the nominal value for the rate of inflation. Real income per capita is considered a good measure of the buying power of an individual in a particular area because it adjusts for both the number of people in the area and the relative inflation of the area. According to Forbes magazine, the state with the highest annual real income per capita in 2020 is Connecticut with a real per capita income of $68,533. Suppose that the annual real income of individuals in Connecticut follows a normal distribution with a mean of $68,533 and standard deviation of $23,480.

(a) What is the probability that an individual in Connecticut has an annual real income of $54,000 or more? (Round your answer to four decimal places.)

(b)

What is the probability that an individual in Connecticut has an annual real income of $29,000 or less? (Round your answer to four decimal places.)

(c)

What is the probability that an individual in Connecticut has an annual real income between $56,000 and $76,000? (Round your answer to four decimal places.)

(d)

What is the annual real income of a person (in dollars) in the 99th percentile of annual real income in Connecticut? (Round your answer to the nearest dollar.)

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