It is currently 17 Jun 2019, 23:05

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# The salary scale for players in a certain sports league is d

Author Message
TAGS:
Intern
Joined: 09 Jun 2018
Posts: 2
Followers: 0

Kudos [?]: 2 [1] , given: 1

The salary scale for players in a certain sports league is d [#permalink]  14 Jul 2018, 10:16
1
KUDOS
00:00

Question Stats:

89% (01:16) correct 10% (01:54) wrong based on 29 sessions
The salary scale for players in a certain sports league is determined statistically by reference to a curve with a normal distribution. In 1960, the mean salary for players in the league was $10,000 with a standard deviation of$1000. That year,rookie players were paid $8,000. In 2010, the mean salary for players in the league was 1,175,000 with a standard deviation of$300,000. Rookies in 2010 were paid salaries in a dollar amount equal to a position on normal curve for 2010 that rookie players were paid in the year 1960. What was the salary for rookie players in 2010?

A- $1,475,000 B-$1,175,000
C- $875,000 D-$575,000
E- $275,000 Cambridge, Victory book. [Reveal] Spoiler: OA Last edited by Menna on 14 Jul 2018, 11:19, edited 2 times in total. Founder Joined: 18 Apr 2015 Posts: 6885 Followers: 114 Kudos [?]: 1339 [0], given: 6306 Re: Standard Deviation Question [#permalink] 14 Jul 2018, 11:16 Expert's post Is this a numeric entry question or a problem solving with five answer choices ?? Please post the question properly, so we can help you @Menna. Regards _________________ GRE Prep Club Legend Joined: 07 Jun 2014 Posts: 4810 GRE 1: Q167 V156 WE: Business Development (Energy and Utilities) Followers: 117 Kudos [?]: 1895 [1] , given: 397 Re: The salary scale for players in a certain sports league is d [#permalink] 15 Jul 2018, 02:35 1 This post received KUDOS Expert's post The trick in this question is not to get intimidated by the terms mean and standard deviation. Mean is the salary the guy at 50th percentile gets. So let us suppose we have 100 guys in the league and we make them stand in a row with increasing salary then the guy standing in the 50th position in the line get the mean salary. So 50th guy in the line will get$10000 in 1960

So 50th guy in the line will get $1175000 in 2010. Look at the curve below. One standard deviation means that the guys at 84.13 (50% +34.13%) earn more and and guys at 15.87% (50% - 34.13%) earn less by the amount of standard deviation. Attachment: bell curve.png [ 7.13 KiB | Viewed 708 times ] So in 1960 the guys earning$10000 were at 50% guys earning $9000 ($10000-$1000) were at the 15.87% and guys earning$8000 ($10000-2*$1000) were at 2.28%.

The question suggest the all the rookie players were in the last 2.28% of the population.

So apply the distribution to the new salaries we can say that rookies in 2010 were earning two standard deviations below the average.

So the rookie income in 2010 = mean income - 2 *standard devation= $1175000-$300000-$300000.=$575000
_________________

Sandy
If you found this post useful, please let me know by pressing the Kudos Button

Try our free Online GRE Test

Director
Joined: 07 Jan 2018
Posts: 644
Followers: 7

Kudos [?]: 601 [2] , given: 88

Re: The salary scale for players in a certain sports league is d [#permalink]  15 Jul 2018, 23:01
2
KUDOS
From the question,

The Mean of 1960 is $$10000$$
while S.D. is $$1000$$
The salary of rookie player in 1960 is 2 SD below the mean which is $$10000-2000 = 8000$$

Now coming to 2010 we are given that the Mean is 1,175,000
and 1 S.D. is $300,000 Hence if the payment was commensurate with the distribution of normal curve of 1960 we can conclude that rookie players received 2 S.D. below the mean or, $$1175000- 2 * 300,000 = 1175000 - 600000 = 575000$$ _________________ This is my response to the question and may be incorrect. Feel free to rectify any mistakes Intern Joined: 16 Jul 2018 Posts: 4 Followers: 0 Kudos [?]: 5 [1] , given: 0 Re: The salary scale for players in a certain sports league is d [#permalink] 16 Jul 2018, 11:45 1 This post received KUDOS It appears to be recording the correct answer (d) as incorrect. Please fix Founder Joined: 18 Apr 2015 Posts: 6885 Followers: 114 Kudos [?]: 1339 [0], given: 6306 Re: The salary scale for players in a certain sports league is d [#permalink] 16 Jul 2018, 12:57 Expert's post Fixed as D. Thank you. Regards _________________ Director Joined: 09 Nov 2018 Posts: 508 Followers: 0 Kudos [?]: 27 [0], given: 1 Re: The salary scale for players in a certain sports league is d [#permalink] 11 Jan 2019, 09:14 Menna wrote: The salary scale for players in a certain sports league is determined statistically by reference to a curve with a normal distribution. In 1960, the mean salary for players in the league was$10,000 with a standard deviation of $1000. That year,rookie players were paid$8,000. In 2010, the mean salary for players in the league was 1,175,000 with a standard deviation of $300,000. Rookies in 2010 were paid salaries in a dollar amount equal to a position on normal curve for 2010 that rookie players were paid in the year 1960. What was the salary for rookie players in 2010? A-$1,475,000
B- $1,175,000 C-$875,000
D- $575,000 E-$275,000

OA: \$575,000

Cambridge, Victory book.

Founder
Joined: 18 Apr 2015
Posts: 6885
Followers: 114

Kudos [?]: 1339 [0], given: 6306

Re: The salary scale for players in a certain sports league is d [#permalink]  12 Jan 2019, 01:31
Expert's post
Done
_________________
Re: The salary scale for players in a certain sports league is d   [#permalink] 12 Jan 2019, 01:31
Display posts from previous: Sort by