1. Which one of the three “averages” was used to calculate the “average” salary of $151,462 per year?
The mean because we are calculating the average salary of the company. It needs to take everyone’s salary into account.
2. Which one of the three “averages” might better represent what a person working at the company makes? Why? Calculate the value of this “average”.
The median because it is not sensitive to extreme values in this distribution. The median represents what half of the company makes, therefore, those high positions with big salaries will not affect the value.
The median is $36,000.
3. If you were interviewing for a job at this company would the difference between these two “averages” change your mind about considering working
The mean because we are calculating the average salary of the company. It needs to take everyone’s salary into account.
2. Which one of the three “averages” might better represent what a person working at the company makes? Why? Calculate the value of this “average”.
The median because it is not sensitive to extreme values in this distribution. The median represents what half of the company makes, therefore, those high positions with big salaries will not affect the value.
The median is $36,000.
3. If you were interviewing for a job at this company would the difference between these two “averages” change your mind about considering working