1.

The Wall Street journals 1995 executive Pay Survey found the following percent changes in the salaries !ase plus !onus" paid to the chief executive of ficers #$%s" of &9 industrial fir's.

Company
()P (llied Signal (r'strong ,riggs - Stratton ,rowing./erris #S1 #aterpillar #onsolidates /reight #rown #or4 Seal 6eere 6onnelley 7.7." 6un ,radstreet $'erson $lectric $ngelhard /ederal $xpress /luor 8arnischfeger 8illen!rand 9ngersoll.7and :orfol4 Southern %wens.#orning %wens.9llinois PP; 9ndustries Paccar Pentair Pre'ar4 7ayche' 7yder Syste' Sonoco Products Stanley Wor4s Tecu'seh Products Te'ple.9nland Tho'as - ,etts Trinova Tyco <nion Pecific W)1 Technologies Westinghouse =ellow

Percent Change
11.* *+ &1.9 .*.9 *9.0 19.1 .+.2 .3*.& .5.5 1+.0 1*.3 9.0 1.& *3.5 5.5 1*.5 1+.9 &.1 *5.& *+.& **.0 .2.5 5.& 10.2 23.1 .&&.5 5.* .&3.1 *2.& .12.9 .&.5 &5.2 *5.0 1&.1 *2.* 0.2 *2.0 30.1 .+.5

a" What fraction of these chief executives too4 a pay cut in 1995> (ssu'ing that these results are representative of the salary changes for the #$%s of all industrial fir's? find the pro!a!ilities that out of six rando'ly chosen #$%s@ 1" $xactly five saw their pay decrease in 1995. *" (t least five got raises in 1995. &" /ewer than four got raises in 1995. !" #o'pute the 'ean and standard deviation for these thirty.ni ne changes in salaries. c" (ssu'e that the 1995 percent change in salary for the #$%s of all industrial fir' are nor'ally distri!uted with 'ean and standard deviation as calculated in !". /ind the pro!a!ilities that a rando'ly chosen #$% had a pay change in 1995 of@ 1" (t least a *5 percent increase. *" Aess than a 5 percent increase. &" ,etween a 15 percent decrease and a 15 percent increase.