Answer-first summary for fast verification
Answer: $8,500
To compute the bonus, we apply the following linear transformation to each employee's salary: ``` Y = α + βx Y = 1,000 + 0.15x ``` where Y is the transformed variable (bonus), X is the original variable (salary), β is the scale constant, and α is the shift constant. The mean bonus, i.e., mean of Y, is given by: ``` E(Y) = E(α + βx) = α + βE(X) ``` We know that the mean salary is $50,000. Thus, ``` E(Y) = $1,000 + 0.15($50,000) = $8,500 ```
Author: Nikitesh Somanthe
Ultimate access to all questions.
The average salary for an employee at Capital Asset Managers is $50,000 per year. This year, the management has decided to award bonuses to every employee:
$1,000Determine the mean bonus received by employees.
A
$8,500
B
$4,250
C
$500
D
$10,500
No comments yet.