Question

Tara and Ashley are twin sisters. Tara is a junior accountant making $55,125 in salary per year. Ashley is a textile plant shift manager earning $43,950 in salary per year. It is obvious that Tara is the higher-earning of the twins purely in terms of salary. However, who has the higher salary relative to their respective industries?

Assume the mean income for junior accountants is $54,500 with a standard deviation of $7,425. Additionally, the mean income for textile plant shift managers is $42,500 with a standard deviation of $5,500.

Answer 1

Solution: by using above data:

Junior : mean = 54500, sd = 7425
Managers : mean = 42500, sd = 5500

Z = (X-mean)/sd

Junior X : 55125

=> (55125-54500)/7425 = 0.0841

Manager x : 43950
  
=> (43950-42500)/5500 = 0.2636

=> Manager is the higher salary relative to their respective industries.