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16 April, 11:01

Eitan sells a mean of $8000 worth of merchandise with a standard deviation of $1500 each month.

Each month, Eitan earns a base salary of $2000 plus a commission of 30% of his sales. He calculates his total

salary according to this formula:

[total salary) = commission + base salary]

What will be the mean and standard deviation of the distribution of Eitan's total monthly salary?

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Answers (1)
  1. 16 April, 12:54
    0
    t = $4400 + / - $450

    mean = $4400

    standard deviation = $450

    Step-by-step explanation:

    Given;

    Base salary b = $2000

    Sales s = $8000 + / - $1500

    Commission c = 30% sales = 0.3 * s

    Total Salary t = base salary + commission = b + c

    Commission c = 0.3*s = 0.3 * ($8000 + / -$1500)

    c = $2400 + / - $450

    Total salary t = b + c

    Substituting the values;

    t = $2000 + ($2400 + / - $450)

    t = $4400 + / - $450

    mean = $4400

    standard deviation = $450
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