A factory has added a new incentive program to encourage employees to use payroll deductions to contribute to their 401K retirement account. The company will now contribute funds based on the employee deduction amount. Before the program, employees contributed on average $100.602 with standard deviation of $5.178. To calculate the new contribution amount (employee and company combined), every observation in the dataset is multiplied by 1.578. What will the new mean be?

Question 6 options:

1)

100.6
2)

102.18
3)

63.75
4)

158.75
5)

1.58

Explanation:

Mean is given as $ 100.602

every observation in the dataset is multiplied by 1.578

= 100.602 × 1.578

= 158.75

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