Statistics: Informed Decisions Using Data (4th Edition)

Published by Pearson
ISBN 10: 0321757270
ISBN 13: 978-0-32175-727-2

Chapter 3 - Section 3.2 - Assess Your Understanding - Applying the Concepts - Page 155: 38b

Answer

$R=45~thousand~dollars$ The population variance: $σ^2=160~(thousand~dollars)^2$ The population standard deviation: $σ=12.65~thousand~dollars$ They remain the same.

Work Step by Step

Adding the bonuses (+2.5 thousands of dollars each): 32.5, 32.5, 47.5, 52.5, 52.5, 52.5, 57.5, 57.5, 62.5, 77.5 $R=largest~value-smallest~value=77.5-32.5=45$ The mean: $μ=\frac{32.5+32.5+47.5+52.5+52.5+52.5+57.5+57.5+62.5+77.5}{10}=52.5$ The population variance: $σ^2=\frac{Σ(x_i-μ)^2}{n}=\frac{(32.5-52.5)^2+(32.5-52.5)^2+(47.5-52.5)^2+(52.5-52.5)^2+(52.5-52.5)^2+(52.5-52.5)^2+(57.5-52.5)^2+(57.5-52.5)^2+(62.5-52.5)^2+(77.5-52.5)^2}{10}=160$ The population standard deviation: $σ=\sqrt {160}=12.65$
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