Question

The distribution of 27 salaries at a small company has mean $35,000 and standard deviation $2,000. Suppose the company hires a 28th employee at a salary of $120,000. Which of the following claims about the new salary distribution is supported? a. The median is not likely to change. b. The range is not likely to change. c. The mean is likely to increase.

Answer 1

Answer:

Correct option is (c)

Explanation:

Mean is the average of values in a data set. Range is the difference between highest and lowest values in the data set and median is the mid point (value) that separates lower and higher values in a data set.

If a data point is added, in this case 28th employee is added, definitely mean will change. If data point higher than existing mean is added,  then mean will increase. Median and range may or may not change depending on the value added or removed.

In this case, mean is likely to increase since 28th employee's salary is more than existing mean.