Parker has a part-time job picking apples. Let the random variable A represent the number of baskets of apples picked each day. The distribution of A has mean 4.5 baskets and standard deviation 1.3 baskets. Parker is paid $65 per day plus $5 per basket. What are the mean μ and standard deviation σ of Parker’s daily pay?

A=μ=$87.50 and σ=$71.50

B=μ=$87.50 and σ=$6.50

C=μ=$22.50 and σ=$6.50

D=μ=$87.50 and σ=$1.30

E=μ=$22.50 and σ=$71.50

Number of baskets of apples picked each day by Parker = A

Mean of A = 4.5 baskets

Standard deviation = 1.3 baskets

Daily payment received by Parker = US$ 65 + US$ 5 per basket

Let’s find out the mean and standard deviation of Parker’s daily pay:

Daily payment received by Parker = US$ 65 + US$ 5 per basket

Daily payment mean received by Parker = 65 + 5 * 4.5

Daily payment mean received by Parker = 87.5

Standard deviation in US$ = 1.3 * 5

Standard deviation in US$ = 6.5

**The correct answer is B. μ = US$87.50 and σ = US$6.50**