1. What are the characteristics of standard normal distribution? The HR department of an organization collects data on employees’ age, salary, level of education, gender, and ethnicity. Which data do you think is more likely to follow normal distribution? Explain why.
2. If you determined that the distribution of annual salaries of NBA players is bell-shaped and symmetrical about the mean salary, do you think introducing Michael Jordan’s last annual salary of more than $30 million would skew this distribution? Explain why or why not. What would be the best measure of central tendency for this distribution: the mean, median, or mode?
3. What are some conditions under which business decisions are made using subjective probability concepts? Provide at least two examples of subjective probability. What is the role of probability concepts in business decision-making? Provide specific examples.