The Data Shown Below Represents the Annual Salaries, in Thousands

question 23

Multiple Choice

The data shown below represents the annual salaries, in thousands of dollars, of the top five paid individuals in your university.
{180,190,205,210,300}
Increasing each salary by $25,000 would have what effect on the standard deviation of the salaries?

• A) Increase the standard deviation by $25,000.
• B) Increase the standard deviation by $5,000.
• C) No increase to the standard deviation.
• D) There is not enough information to answer the question.
• E) None of the above.

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Definitions:

Total Costs

refer to the sum of all the expenses involved in producing a good or service, including both fixed and variable costs.

Profit Maximizes

The process by which a company establishes the price and volume of output that leads to the maximum profit.

Deadweight Loss

The reduction in total surplus that results from a market distortion, such as a tax or subsidy, signaling inefficiencies in allocation of resources.

Socially Optimal Level

A state at which the allocation of resources maximizes social welfare, often where marginal social benefit equals marginal social cost.