A First Course in Probability (10th Edition)
A First Course in Probability (10th Edition)
10th Edition
ISBN: 9780134753119
Author: Sheldon Ross
Publisher: PEARSON
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Suppose you are representing the employees at a
large corporation during contract negotiations. You
have a list of the salaries of all the employees at the
corporation.
The company has many lower level employees and
only a few high paid management employees.
There is a complicated system of raises that makes
it so that there are many different salaries for the
lower level employees.
a. Which measure of center would you use to
represent the employees? You are trying to support
the claim that the lower level employees are not
making enough money so you want to compare the
average salary for this company with the national
average.
mode
mean
median
b. Why is this the better choice? Explain why you
chose your answer and why the other two
measures of center are not as appropriate.
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Transcribed Image Text:Suppose you are representing the employees at a large corporation during contract negotiations. You have a list of the salaries of all the employees at the corporation. The company has many lower level employees and only a few high paid management employees. There is a complicated system of raises that makes it so that there are many different salaries for the lower level employees. a. Which measure of center would you use to represent the employees? You are trying to support the claim that the lower level employees are not making enough money so you want to compare the average salary for this company with the national average. mode mean median b. Why is this the better choice? Explain why you chose your answer and why the other two measures of center are not as appropriate.
Expert Solution
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Step 1

It is given that the office has many lower level employees making less money and has very few higher level management employees who are paid high.

If a histogram is plotted to the given salary information, it is observed that the histogram is right skewed because the less paid employees are greater in numbers and hence the left side of the histogram will be raised and the histogram drops as it goes to the right

There are 3 central tendency measures that is commonly used:

Mean is the average of the data values present in the dataset. To calculate the mean all the data values in the dataset are added and divided by the total number of data values present in the dataset

Median in a dataset is the midpoint of a dataset. 

Mode is a central tendency measure that denotes the data value which has the highest frequency

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