A company employs 48 people in various departments. The average annual salary of each employee is $25,000 with a maximum variance of $3,000. What is the range of the total salary that the company pays to its employees annually?

Given:

n = 48, the sample size

m = $25,000, th sample mean

σ = $3000, the maximum variance

The standard deviation is

s = √σ = √ (3000) = 54.772

As a rule of thumb, the range is 4 times the standard deviation. Therefore the range is

R = 4*54.772 = 219.09

Half the range is

R/2 = 219.09/2 = 109.45

The required range is

(25000-109.45, 25000+109.45) = (24890.46, 25109.54)

Answer: ($24,890.46, $25,109.54)