Application and Reasoning Problems

3.6. Consider the data and work you did in problem 1.

  1. Will any fixed amount of increase result in the same change to the mean? What about a salary decrease? Explain your reasoning.
  2. Will any fixed amount of increase result in the same change to the standard deviation? What about a salary decrease? Explain your reasoning.
  3. Will any percentage increase result in the same change to the mean? What about a salary decrease? Explain your reasoning.
  4. Will any percentage increase result in the same change to the standard deviation? What about a salary decrease? Explain your reasoning.

3.7. Based on your work (and anything else you think is important to investigate) from problem 3, is it more important to have more experience or more education before working at Alltron? Support your claim.

3.8. Consider the quarterly sales figures at a national chain of pet supply stores. The stores are divided into four geographic regions (NE = Northeast, NW = Northwest, SE = Southeast, SW = Southwest).






Region NE NW SE SW





Mean Sales (thousands of dollars) 409 384 265 241
Standard Deviation in Sales (thousands of dollars) 112 77 73 120





  1. Which region is performing better? Justify your answer.
  2. Which region is performing the worst? Justify your answer.
  3. Which typical sales figure is most trustworthy? Explain.
  4. In which region do you expect to find the store with the highest sales? Explain.
  5. In which region do you expect to find the store with the lowest sales? Explain.