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The Practice of Statistics | 5th Edition | ISBN: 9781464108730 | Authors: Daren S. Starnes, Josh Tabor
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Mean salary? Last year a small accounting firm paid each of its five clerks $22,000, two

Chapter 1, Problem 86

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QUESTION:

Mean salary? Last year a small accounting firm paid each of its five clerks $22,000, two junior accountants $50,000 each, and the firm’s owner $270,000. What is the mean salary paid at this firm? How many of the employees earn less than the mean? What is the median salary? Write a sentence to describe how an unethical recruiter could use statistics to mislead prospective employees.

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QUESTION:

Mean salary? Last year a small accounting firm paid each of its five clerks $22,000, two junior accountants $50,000 each, and the firm’s owner $270,000. What is the mean salary paid at this firm? How many of the employees earn less than the mean? What is the median salary? Write a sentence to describe how an unethical recruiter could use statistics to mislead prospective employees.

ANSWER:

Step 1 of 5

The Mean is the sum of all observations divided by the number of observations (n), ie;

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