Question

Using the Smith's BBQ Report, if hourly wages increase by 10% next week from the current week, and all other costs stay constant, what will the variance of Total Payroll be next week?

Answer 1

Answer:

variance of 2 weeks would be 12.5%...

variance is sum of square of (x- mean)/n

here mean would be greater than x(which is not increased wages) by 5% in 2 weeks.. first nonchange 2nd by 10 so average is 5.

5^2/2= 12.5