Answer:
Step-by-step explanation:
To summarize the information provided, we can infer the following:
- The income distribution is normal with a mean income of $10,000.
- The top 2.5% of wage earners earn $18,000 or more.
This implies that 97.5% of the wage earners earn less than $18,000.
Now, if we want to find the income level at which 97.5% of the wage earners earn less than that amount, we need to find the corresponding value in the normal distribution.
In a normal distribution, approximately 95% of the data falls within 2 standard deviations of the mean. Therefore, the value corresponding to the top 2.5% is approximately 2 standard deviations above the mean.
Given that the mean income is $10,000 and the top 2.5% earn $18,000 or more, the income level that approximately 97.5% of the wage earners earn less than is $18,000.
So, the correct answer is:
B. 95% of the wage earners earn less than $14,000 each.
