APFIVE All of the following statements regarding the effects of a $3000 increase and a 10% raise on employee salaries are true except:
Salary Data and Adjustments:
Original Salaries (in dollars): 3000, 7000, 15000, 22000, 23000, 38000.
Scenario 1: Every employee receives a $3000 increase, which adds a constant value to each salary.
Scenario 2: Every employee receives a 10% raise, meaning each salary is multiplied by 1.10.
A 10% raise multiplies the mean salary by 1.10.
While adding the same constant does not change the differences between salaries, multiplying each salary by 1.10 scales both the mean and the spread by 10%.
Adding a $3000 constant to each salary results in the mean being multiplied by $3000.
Adding a constant to every salary increases the mean by exactly that constant.
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