Question

A company is interested to know the variation in yearly sales amount for all 5 salespeople in the company.The dataset shown below is the sales amount sold by the 5 salespeople in the company (expressed in thousands of dollars):

Answer 1

Given

40, 60, 65, 70, 80

Procedure

In the formula above, u represents the mean of the data points, x is the value of an individual data point, and N is the total number of data points.

u=(40+60+65+70+80)/5

u=63

`\begin{gathered} (x-u)^2= \\ (40-63)^2=529 \\ (60-63)^2=9 \\ (65-63)^2=4 \\ (70-63)^2=49 \\ (80-63)^2=289 \end{gathered}`
`\sum ^{}_{}(x-u)^2=880`
`\sigma^2=\frac{\sum ^{}_{}(x-u)^2}{N}=(880)/(5)=176`

The variance is 176