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The average salary of the employees in a certain organization is equal to 9300 with a standard deviation of 1400. It was decided to reduce 10% of each employee's salary and it was also decided to reduce another 100. What are the new average and standard deviation?

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Answer to a math question The average salary of the employees in a certain organization is equal to 9300 with a standard deviation of 1400. It was decided to reduce 10% of each employee's salary and it was also decided to reduce another 100. What are the new average and standard deviation?

Expert avatar
Corbin
4.6
108 Answers
Let's first calculate the new average salary after reducing 10% of each employee's salary.

To reduce 10% of each employee's salary, we can multiply the average salary by 0.9 (1 - 0.1).

New average salary = 9300 * 0.9 = 8370

Now let's calculate the new standard deviation.

Since the reduction of 10% is a proportional reduction, the standard deviation will also be reduced by 10%.

New standard deviation = 1400 * 0.9 = 1260

Next, it was decided to reduce another 100 from each employee's salary.

Therefore, the new average salary after reducing another 100 would be:

New average salary = 8370 - 100 = 8270

The standard deviation remains the same as before since reducing a fixed amount does not affect the spread of data.

Answer:

The new average salary is 8270.

The new standard deviation is still 1260.

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