The annual salaries of all employees at a financial company are normally distributed with a mean of $34,000 and a standard deviation of $4,000. What is the z-score of a company employee who makes an annual salary of $54,000?

Use the z-score formula: z = (salary − mean) ÷ standard deviation. For this employee, z = ($54,000 − $34,000) ÷ $4,000 = $20,000 ÷ $4,000 = 5. The salary is 5 standard deviations above the mean, so the correct choice is 5.

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