Question

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.

Answer 1

Answeya The appropriate measure to be used is Median Answerb Mean - We know mean gets affected in presence Outliers. so a very high talany can drag the mean toward Helf. So we may a highen aveuage salary than expected. get Mode- The mode of the data, in this case, case, will be able to provide us with the salally amount appearing most of the time in data It will not be able to help us locate the centen of the data in this case. Hence mode is not the correct answer to use here.

use hene. Median - Median is that value below which 50 st and above which so ot, obsenvations clie. In presence of outliers ou very Scattered dataset, median gives the chest estimate since the salaries include the many lower leves employees and the few high paid management employees, the median will be able to capture the average Salary cof lower level employees (Ang)
Thank you