Question

Suppose a company has 10 employees, 1 earning R160,000, 1 earning R120,000, 2 earning R60,000, 1 earning R40,000, and 5 earning R32,000.

What is the standard deviation of the salaries

Answer 1

Answer:

44621.868081817

Step-by-step explanation:

Standard deviation = √(∑(number – mean)^2/N)

Mean= mean of all numbers

N = total numbers

In other words SD is square root of variance.

Numbers:  

160,000, 120,000, 60,000, 6000040,000, 32,000, 32,000, 32,000, 32,000, 32,000

Mean of above numbers = 60000 (Average/Mean = Sum of all numbers / count of numbers)

Sum of (number – mean)^ 2 = (160000 – 60000)^2 + (120000 – 60000)^2 + (60000 – 60000)^2 +  (60000 – 60000)^2 + (40000 – 60000)^2 + (32000 – 60000)^2 + (32000 – 60000)^2 + (32000 – 60000)^2 + (32000 – 60000)^2 + (32000 – 60000)^2

= 100000^2 + 60000^2 + 20000^2 + 28000^2 + 28000^2 + 28000^2 + 28000^2 + 28000^2

N = 10.

Standard Deviation = 44621.868081817