Question
Dick Hoover, owner of Modern Office Equipment, is concerned about freight costs and clerical costs incurred on small orders. In an effort to reduce expenditures
Dick Hoover, owner of Modern Office Equipment, is concerned about freight costs and clerical costs incurred on small orders. In an effort to reduce expenditures in this area, he has decided to introduce a discount policy rewarding orders over $40 in the hope that this will cause customers to consolidate a number of small orders into large orders. The following data show the amount per transaction for a sample of 28 customers: 10,15,20,25,15,17,41,50,5,9,12,14,35,18,19,17,28,29,11,11,43,54,7,8,16,13,37,18
. If the policy is successful, will the standard deviation of the distribution increase, decrease, or remain unaffected?
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