A dataset of employee salaries shows a mean of $70,000 and a standard deviation of $10,000. If every employee receives a $5,000 raise, what will be the new mean and standard deviation of salaries?

The correct answer to the question "A dataset of employee salaries shows a mean of $70,000 and a standard deviation of $10,000. If every employee receives a $5,000 raise, what will be the new mean and standard deviation of salaries?" is Option B: Mean: $75,000, SD: $10,000.

The other options — A) Mean: $70,000, SD: $10,000, C) Mean: $75,000, SD: $15,000, D) Mean: $70,000, SD: $15,000 — are incorrect for this GMAT Exam Prep question. As explained above: Adding a constant value to every data point shifts the mean by that constant, so the new mean is $70,000 + $5,000 = $75,000. However, it does not change the spread or variability of the data, so the …