# Case Study Analysis I

The U.S. Bureau of Labor Statistics reports that the average annual expenditure on food and drink for all families is \$5,500 (Money, December 2003). Assume that annual expenditure on food and drink is normally distributed and that the standard deviation is \$1,000. (50 points)

What is the range of expenditures of the 18.41% of families with the lowest annual spending on food and drink
Assume total number of families is 500,000. How many families spend more than \$6000 annually on food and drink

The average base salary for a store manager (Wal-Mart) in Riverside, California, is \$80,000, and the average base salary for a store manager (Wal-Mart) in Los Angeles, California, is \$89,000. Assume that salaries are normally distributed, the standard deviation for store managers in Riverside is \$20,000, and the standard deviation for store managers in Los Angles is \$22,000. (75 points)

What is the probability that a store manager in Riverside has a base salary in excess of \$100,000
What is the probability that a store manager in Los Angeles has a base salary in excess of \$100,000
What is the probability that a store manager in Los Angeles has a base salary of less than \$67,000
Based the results from (A)-(C), if you are a job applicant for store manager position (Wal-Mart) in California, how would you negotiate annual salary using at least 200 words.

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