Management At Gordon Electronics Is Considering Adopting A Bonus System To Incre (1)

Management at Gordon Electronics is considering adopting a bonus system to increase

production. One suggestion is to pay a bonus on the highest 5% of production based on

past experience. Past records indicate weekly production follows the normal distribution.

The mean of this distribution is 4,000 units per week and the standard deviation is 60 units

per week. If the bonus is paid on the upper 5% of production, the bonus will be paid on

how many units or more.

Do I use the Normal Probabilities functions to answer this?

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