Almost all companies utilize some type of year-end


Almost all companies utilize some type of? year-end performance review for their employees. Human Resources? (HR) at a? university's Health Science Center provides guidelines for supervisors rating their subordinates. For? example, raters are advised to examine their ratings for a tendency to be either too lenient or too harsh. According to? HR, "if you have this? tendency, consider using a normal

distribution-?10%

of employees? (rated) exemplary,? 20% distinguished,? 40% competent,? 20% marginal, and? 10% unacceptable." Suppose you are rating an? employee's performance on a scale of 1? (lowest) to 100? (highest). Also, assume the ratings follow a normal distribution with a mean of

45

and a standard deviation of

13.

a. What is the lowest rating you should give to an? "exemplary" employee if you follow the? university's HR? guidelines?

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Finance Basics: Almost all companies utilize some type of year-end
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