The annual salaries of three employees at Maxton Office Resources are $20,000, $25,000, and $30,000. If each of these employees receives a 3% raise, how does that affect the mean of these salaries? How does it affect the standard deviation?
A. The mean of these salaries becomes 1.03 times larger.
The standard deviation remains the same.
B. The mean of these salaries remains the same.
The standard deviation remains the same.
C. The mean of these salaries becomes 1.03 times larger.
The standard deviation becomes 1.03 times larger.
D. The mean of these salaries remains the same.
The standard deviation becomes 1.03 times larger.
E. None of these choices.
Answer: C
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