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Help, could someone please help me answer the following statistics questions

 
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Aug31-10, 02:07 PM   #1
 

Help, could someone please help me answer the following statistics questions


1. The problem statement, all variables and given/known data

The average salary for an employee at ABC Ltd is £30,000 per year, with a variance of £4,000,000. This year, the management plans to award every employee a fixed end-of-year bonus of £500 and an incentive bonus that is equal to 10% of the employee's salary.

a) What is the mean bonus received by employees?

b) What is the standard deviation of the employees bonuses?

2. Relevant equations

Statistics

3. The attempt at a solution

None, need urgent help!
 
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Aug31-10, 03:56 PM   #2
 
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Quote by Tek1Atom View Post
1. The problem statement, all variables and given/known data

The average salary for an employee at ABC Ltd is £30,000 per year, with a variance of £4,000,000. This year, the management plans to award every employee a fixed end-of-year bonus of £500 and an incentive bonus that is equal to 10% of the employee's salary.

a) What is the mean bonus received by employees?

b) What is the standard deviation of the employees bonuses?

2. Relevant equations

Statistics

3. The attempt at a solution

None, need urgent help!
Let X be the random variable that represents employee salaries. From the given information X is N(30,000, 2000). What random variable represents the bonuses?
 
Aug31-10, 04:14 PM   #3
 
Let Y be the random variable that represents the bonuses
 
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