Question

Problem #4 Two large corporations, A and B, hire many new college graduates as accountants at entry-level positions. In 2009 the starting salary for an entry-level accountant position was $36,000 a year at both corporations. At each corporation, data were collected from 30 employees who were hired in 2009 as entry-level accountants and were still employed at the corporation five years later. The yearly salaries of the 60 employees in 2014 are summarized in the boxplots below. Corporation A Corporation B $30 $40 $80 $50 S60 $70 Yearly Salary (thousands) a) Write a few sentences comparing the distribution of the yearly salaries at the two corporations. b) Suppose both corporations offered you a job for $36,000 a year as an entry-level accountant. i) Based on the boxplots, give one reason why you might choose to accept the job at corporation A. ii) Based on the boxplots, give one reason why you might choose to accept the job at corporation B.

Answer 1

a) Analysis of the diagram

Particulars	Salary Received (Approximate)
Percentage	A	B
25% of employees	$36000 to $ 48000	$41000 to $48000
25% of employees	$48000 to $52000	$48000 to $52000
25% of employees	$52000 to $ 56000	$52000 to $54000
25% of employees	$56000 to $ 63000	$54000 to $60000

The median of the both corporation is same and also the first quartile of the both corporation is also same ie., $48000.

The corporate A have employees with more rage of salary as it ranges between 36000 to 63000 whereas the rage of salary in corporate B rages between 41000 to 60000.

So the scope of getting highest salary is there in corporate A ie., 63000 but there is also a chance to recieve the lowest salary ie., 36000 comparing with the corporate B.

In corporate B the salary disparity is comparatively low,and consistent manner of salary distribution is followed by them as the range of salary is low.

b) 1) Reason to choose Corporate A

1. There is chance to receive highest salary of $63000 in the future if you get hired in A wheresa the highest salary is limited to $60000 in corporate B
2. The 50% of the employees receives salary ranges from $48000 to $56000 , there is always a chance to fall in this category in the future and receive more salary compared to the $41000 to $52000 in Corporate B

2) Reason to choose Corporate B

1. The salary disparity is low .The lowest salary after completing 5 year is $ 41000 whereas in Corporate A It is the same as the entry level $ 36000.So there is zero probability that you receive the entry level salary in future.