Question

To illustrate the importance of outliers, suppose you do not count the owner in the last problem. The data for the other

workers is:
$ US
5 people earn $25,000, 3 earn $27,000, and 1 earns $34,000
What is the mean salary and standard deviation (to the nearest dollar) of the workers?

Answer 1

The mean is 26666.67 and the standard deviation is 372919430.33.

Explanation:

The mean means the average of the numbers.

The mean will be
`(25000*5 + 27000*3 + 34000)/(5 + 3 + 1) = (240000)/(9) = 26666.666666666`.

The differences of the earnings from the mean are 1666.67, 26997.33, 33997.33.

Squaring the numbers we get, 2777788.89, 728855827.13, 1155818447.12.

We need to find the mean of the above numbers to get the standard deviation.

Thus, the standard deviation is
`(2777788.89*5 + 728855827.13*3 + 1155818447.12)/(9) = 372919430.33`.