THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
Sales at a local wholesaler consist of both retail as well as online sales.During the course of a month,retail sales have a mean of $96,780 with a standard deviation of $12,520.Over the same time period,online sales average $229,620 with a standard deviation of $23,100.Assume that the retail sales are independent of online sales.
-What is the standard deviation of the wholesaler monthly sales?
A)$35,620.0
B)$26,274.7
C)$71,240.0
D)$68,960.3

Question

Quizplus · Accepted Answer

The standard deviation of the wholesaler's monthly sales can be found by taking the square root of the sum of the squares of the individual standard deviations, since the sales channels are independent. This is calculated as sqrt(($12,520)^2 + ($23,100)^2) = sqrt(156,750,400 + 533,610,000) = sqrt(690,360,400) = $26,274.7.