If the price elasticity of demand is -0.5 and the income elasticity is +0.3, then what will be the effect of a simultaneous 10 p
1 answer:
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Answer:
a) $160,000
b) $55,000
c) $332264.804
Step-by-step explanation:
We are given that there are 10 employees in a particular division of a company and their salaries have a mean of $70,000, a median of $55,000, and a standard deviation of $20,000.
And also the largest number on the list is $100,000 but By accident, this number is changed to $1,000,000.
a) Value of mean after the change in value is given by;
Original Mean = $70,000
= $70,000 ⇒
= 70,000 * 10 = $700,000
New after change = $700,000 - $100,000 + $1,000,000 = $1600000
Therefore, New mean = = $160,000 .
b) Median will not get affected as median is the middle most value in the data set and since $1,000,000 is considered to be an outlier so median remain unchanged at $55,000 .
c) Original Variance = i.e.
=
Original = (
* (10-1)) + (10 * 70,000) = $3,600,700,000
New = $3,600,700,000 -
= 9.936007 *
New Variance = =
= 1.103999 *
Therefore, standard deviation after change =
= $332264.804 .