The question asks whether adding a constant ($500) to each employee's salary affects the standard deviation.

Key Concept:

The standard deviation measures the spread of data points around the mean. When a constant is added to every value in a dataset, the mean shifts but the spread (standard deviation) remains unchanged. However, if each value were multiplied by a constant, the standard deviation would change proportionally.

Answer:

• The new standard deviation remains the same as the original standard deviation.
• The correct choice for the dropdown is: "does not" (as in, "The standard deviation does not increase by $500 from the original").

Would you like me to explain this further with an example?

Here are five related questions to expand your understanding:

1. What happens to the mean when every data point is increased by the same constant?
2. How does multiplying each data point by a constant affect the standard deviation?
3. Why does the variance also remain unchanged when adding a constant?
4. How is standard deviation different from range in terms of measuring spread?
5. What real-world situations might require adjusting salaries while considering variability?

Tip:

Standard deviation is only affected by changes in the relative distances between data points, not by uniform shifts in all values.