For a random variable x, a new random variable y can be created by applying a linear transformation y = a + bx, where a and b are constants. If the random variable x has mean u, and standard deviation a, then the mean, variance and standard deviation of y are given by the following formulas. Hy =a+b y=bo, o= lblo, y = he mean annual salary for employees at a company is $36,000. At the end of the year, each employee receives a $4000 onus and a 7% raise (based on salary). What is the new mean annual salary (including the bonus and raise) for the employees? 事 he new mean annual salary is $

MATLAB: An Introduction with Applications
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Author:Amos Gilat
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Chapter1: Starting With Matlab
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The screen displays a text about linear transformations and how they affect the mean and standard deviation of a random variable. Below is the transcribed text:

---

**Linear Transformation of a Random Variable**

For a random variable \( x \), a new random variable \( y \) can be created by applying a linear transformation \( y = a + bx \), where \( a \) and \( b \) are constants. If the random variable \( x \) has mean \( \mu_x \) and standard deviation \( \sigma_x \), then the mean, variance, and standard deviation of \( y \) are given by the following formulas:

- Mean of \( y \): \( \mu_y = a + b\mu_x \)
- Variance of \( y \): \( \sigma^2_y = b^2\sigma^2_x \)
- Standard deviation of \( y \): \( \sigma_y = |b|\sigma_x \)

**Application Example: Salary Adjustment**

The mean annual salary for employees at a company is $36,000. At the end of the year, each employee receives a $4000 bonus and a 7% raise (based on salary). What is the new mean annual salary (including the bonus and raise) for the employees?

**The new mean annual salary is** $[ \_\_\_ ]

---

The problem illustrates the process of calculating a new mean salary by applying a fixed bonus and a percentage increase to the initial mean salary. The challenge is to determine the total effect of these adjustments.
Transcribed Image Text:The screen displays a text about linear transformations and how they affect the mean and standard deviation of a random variable. Below is the transcribed text: --- **Linear Transformation of a Random Variable** For a random variable \( x \), a new random variable \( y \) can be created by applying a linear transformation \( y = a + bx \), where \( a \) and \( b \) are constants. If the random variable \( x \) has mean \( \mu_x \) and standard deviation \( \sigma_x \), then the mean, variance, and standard deviation of \( y \) are given by the following formulas: - Mean of \( y \): \( \mu_y = a + b\mu_x \) - Variance of \( y \): \( \sigma^2_y = b^2\sigma^2_x \) - Standard deviation of \( y \): \( \sigma_y = |b|\sigma_x \) **Application Example: Salary Adjustment** The mean annual salary for employees at a company is $36,000. At the end of the year, each employee receives a $4000 bonus and a 7% raise (based on salary). What is the new mean annual salary (including the bonus and raise) for the employees? **The new mean annual salary is** $[ \_\_\_ ] --- The problem illustrates the process of calculating a new mean salary by applying a fixed bonus and a percentage increase to the initial mean salary. The challenge is to determine the total effect of these adjustments.
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