Question

Suppose that for a particular company, the yearly bonus for an employee is calculated by :Bi=Si(0.05 + 0.05(Pi/100))Where Si is the individual’s salary, and Pi is the performance for the company (on a scale of 0 to 100). Suppose that the salary for the employee over three years is: 125, 130, and 140(in thousands of dollars), and the performance for the company over the same three years is: 80, 90, 85.

(a) Find the total bonus for the individual over the three year period.

(b) Find the average bonus over the three years.

(c) What is the largest deviation of bonus from the mean, considering all three years?

Answer 1

From the given information, Salary(s,) 125 130 140 Performance(R)809085 The yearly Bonus for an employee is B, - 0.050.05 100 Then, B 1250.05 +0.05 125.0900, 90 100 В, = 130 + 0.05 + 0.05 130.0950 , (005 +005(100) 140.0925. B,-140 + (a)Total Bonus for the individual over the three year period is у В-125.0 900 + 130.095 0 +1 40.09 25 395.2 775 . 12 B, 395.2775 131.7592 The average Bonus over the three years is B-H-- 3 Pn (c)125.0900-131.7592--6.6692 130.0950-131.7592--1.6642, 140.0925-131.7592 -8.3333 Therefore, 8.3333 be the largest deviation of bonus from the mean