At A-Life Corporation, managers begin at $35/hour until they reach $50/hour (salaries are always to the nearest dollar). If the variable x = hourly wage has a discrete uniform distribution, what is the standard deviation of x?
A) $7.50
B) $37.50
C) $42.50
D) $50.00
E) $56.25

Question

Quizplus · Accepted Answer

The standard deviation of a discrete uniform distribution is calculated using the formula: SD = sqrt((b-a+1)^2 - 1)/12, where a is the minimum value and b is the maximum value. Here, a = 35 and b = 50, so SD = sqrt((50-35+1)^2 - 1)/12 = sqrt(16^2 - 1)/12 = sqrt(255)/12 ≈ 7.50.

At A-Life Corporation, Managers Begin at $35/hour Until They Reach