Problem 8E

In a certain company, every worker received a $50- per-week raise. How does this affect the mean salary? The standard deviation of the salaries?

Solution 8E

Step1 of 3:

We have company in that every worker recieved a $50 per week raise.

We need to check How does this affect the mean salary? and The standard deviation of the salaries?

Step2 of 3:

Let be the old salary of workers.

1).Mean of the X is given by:

Where,

= Mean

x = random variable

N = sample size

= 3.

Now,

=

=

=

Hence, = .

Therefore, the mean salary is raised by $50.

Step3 of 3:

2). Standard deviation of X is given by:

=

=

Hence, =

Therefore, standard deviation will be same.