Question

There are 39 employees in a particular division of a company. Their salaries have a mean of $70,000, a median of $55,000, and a standard deviation of $20,000. The largest number on the list is $100,000. By accident, this number is changed to $1,000,000. What is the value of the mean after the change

Answer 1

The value of the mean after the change is $93,076.92

Step-by-step explanation:

given:

- 39 employees

- mean of $70,000

- median of $55,000

- standard deviation of $20,000

- largest number is $100,000 changed to $1,000,000

want: the value of the mean after the change

39 employees ($70,000) - $100,000 + $1,000,000

------------------------------------------------------------------------- = 93076.9231

39

Answer 2

The new mean is 93,076

Step-by-step explanation:

To solve this question we first need to find the total salary of all the employees combined. For that we will multiply the mean by the number of employees. The mean is 70,000 and number of employees are 39 so the total salary is

(70,000*39)=2,730,000. Now in order to find the new mean we first have to deduct 100,000 from this number and add 1,000,000 to it. (2,730,000-100,000+1,000,000)=3,630,000

In order to find the new mean we will divide 3,630,000 by 39

3,630,000/39= 93,076