Business

Sebastian Pollard

6 August, 15:56

For a random variable x, a new random variable y can be created by applying a linear transformation y = a + bx, where a and b are constants. If the random variable x has mean mu Subscript xμx and standard deviation sigma Subscript xσx , then the mean, variance and standard deviation of y are given by the following formulas. mu Subscript y Baseline equals a plus b mu Subscript xμy=a+bμx sigma squared Subscript y Baseline equals b squared sigma squared Subscript xσ2y=b2σ2x sigma Subscript y Baseline equals |b| sigma Subscript xσy=|b|σx The mean annual salary for employees at a company is $31 comma 00031,000. At the end of the year, each employee receives a $40004000 bonus and a 44 % raise (based on salary). What is the new mean annual salary (including the bonus and raise) for the employees?