To illustrate the importance of outliers suppose you do not

To illustrate the importance of outliers, suppose you do not count the owner in the last problem. The data for the other workers is: 5 people earn $25,000, 3 earn $27,000, and 1 earns $34,000 What is the mean salary and standard deviation (to the nearest dollar) of the workers?

Solution

So, the data set consists of 5 $25000 s, 3 $27000s, 1 $34000,

So, Mean is (5*25000+3*27000+1*34000)/(5+3+1) = $26,666.67

Stand deviation= sqrt[(25000-26,666.67)^2+...34000-26666.7)^2]/(9)= $2748.737 = $2749