1. Here are the summary statistics for the weekly payroll of a small company: Lo

Question

1. Here are the summary statistics for the weekly payroll of a small company:
Lowest salary = 250, mean salary = 500, median salary = 500, range = 1050,
IQR = 300, Q1 = 350, standard deviation = 200.

a. In the absence of outliers, do you think the distribution of salaries is symmetric, skewed to the left, or
skewed to the right?

b. Suppose the company gives everyone a $50 raise. Tell the new values of each of the summary statistics.
New median salary =
New IQR =

c. Instead of a $50 raise, suppose the company gives everyone a 5% raise. Tell the new values of each of the
summary statistics below.
New median salary =
New IQR =

Explanation / Answer

a) do you think the distribution of salaries is symmetric because mean = median

b) New Median Salary = 550, IQR =350

Except the standard deviation every statistics will increase 50 points. Standard dev. Will remain unchanged.

c) New median salary = 500+500*(0.05) = 525

New IQR = 300+300*0.05 = 315

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