Question

2. Let Y denote the average starting salary for 2014 U.S. college graduates, measured in dollars. Suppose that the average annual salary is $56,000 dollars, with a standard deviation of 8,000. Find the mean and standard deviation when salary is measured in thousands of dollars.

Answer 1

Average salary: 56

Standard deviation of the salary: 8

Explanation:

$56,000 dollars is 56 thousand dollars.

$8,000 is 8 thousand dollars.

The mean is the average. So the average, measured in thousands of dollars, is 56.

The standard deviation is $8,000. So, the standard deviation measured in thousands of dollars, is 8.