Question regarding the standard deviation of contributions

Reference no: EM13983065

J.J. Kettering & Associates is a financial planning group in Fresno, California. The company specializes in financial planning for schoolteachers in the Fresno area. As such, it administers a 403(b) tax shelter annuity program in which public schoolteachers can participate. The teachers can contribute up to $20,000 per year on a pretax basis to the 403(b) account. Very few teachers have incomes sufficient to allow them to make the maximum contribution. The lead analyst at J.J. Kettering & Associates has recently analyzed the company's 403(b) clients and determined that the annual contribution is approximately normally distributed with a mean equal to $6,400. Further, he has determined that the probability a customer will contribute over $13,000 is 0.025. Based on this information, what is the standard deviation of contributions to the 403(b) program?

Reference no: EM13983065

Questions Cloud

Find an equation of the tangent line to the curve : For f (x) = 3/x: Find f'(x). Find f'(2). Find an equation of the tangent line to the curve at x = 2

Enough capacity with the new : The marketing slogan will be "Why Pay for Storage Capacity that You Don't Need?" Based on the data from the study of iPod owners, what percentage of owners, based on their current usage, would have enough capacity with the new 1-GB player?

Comment on the ramifications of step : Assuming that the manager wants at most a 5% chance of this happening, at what level should she set the mean fill level? Comment on the ramifications of this step, assuming that the company fills tens of thousands of cans each week.

Cost of the new equipment : Suppose the going rate for this procedure by other plumbing shops in the area is $85.00, not including the cost of the new equipment. If No Leak bids the disposal job at $85, on what percentage of such jobs will the actual time required exceed the ..

Question regarding the standard deviation of contributions : Further, he has determined that the probability a customer will contribute over $13,000 is 0.025. Based on this information, what is the standard deviation of contributions to the 403(b) program?

What is the relaxed power of administrators eyes : What is the relaxed power of his eyes? I got 52.2 D which is correct If he has the normal 7.80% ability to accommodate, what is the closest object he can see clearly?

How a person understands the best : How does the community fit in as a stakeholder management, as negative or positive stakeholders of a project? Such as environmental groups, government regulatory, etc.

Described using a normal distribution : A private equity firm is evaluating two alternative investments. Although the returns are random, each investment's return can be described using a normal distribution.

Approximately normally distributed : On average, C&C wash-down motors operate for 15,000 hours with a standard deviation of 1,250 hours before failing. The number of operating hours before failure is approximately normally distributed.

User Account

All Pages