Question

1. ages of accountants the average age of the accountants at three rivers corp. is 26 years, with a standard deviation of 6 years; the average salary of the accountants is $31,000, with a standard deviation of $4000. compare the variations of age and income.

Explanation:

Step1: Calculate the coefficient of variation for age

The formula for the coefficient of variation (CV) is \(CV=\frac{s}{\bar{x}}\times100\%\), where \(s\) is the standard deviation and \(\bar{x}\) is the mean.
For age: \(\bar{x}_1 = 26\), \(s_1=6\)
\(CV_1=\frac{6}{26}\times 100\%\)
\(CV_1=\frac{600}{26}\%\approx 23.08\%\)

Step2: Calculate the coefficient of variation for salary

For salary: \(\bar{x}_2 = 31000\), \(s_2 = 4000\)
\(CV_2=\frac{4000}{31000}\times100\%\)
\(CV_2=\frac{400000}{31000}\%\approx12.90\%\)

Step3: Compare the two coefficients of variation

Since \(CV_1\approx23.08\%\) and \(CV_2\approx12.90\%\)

Answer:

The coefficient of variation for age (\(CV_1\approx23.08\%\)) is greater than the coefficient of variation for salary (\(CV_2\approx12.90\%\)). So, the variation in the ages of accountants is greater than the variation in their salaries.