Question

The salaries of the employees at four companies are summarized below. Answer the questions about them.
Company A: The mean salary is $23,000 and the range of salaries is $44,000.
Company B: The mean salary is $29,000 and the range of salaries is $40,000.
Company C: The mean salary is $22,000 and the range of salaries is $48,000.
Company D: The mean salary is $24,000 and the range of salaries is $41,000.
(a) Based on the information above, which company's salaries have the most variability?
• Company A
• Company B
• Company C
• Company D
(b) Based on the information above, which company has the highest salaries on average?
• Company A
• Company B
• Company C
• Company D

Answer 1

(a) To determine which company's salaries have the most variability, we can look at the range of salaries. The range gives us an idea of how spread out the salaries are.

- Company A: Range = $44,000
- Company B: Range = $40,000
- Company C: Range = $48,000
- Company D: Range = $41,000

Comparing these ranges, **Company C** has the highest range of salaries at $48,000, indicating the most variability.

**Answer: Company C**

(b) To identify which company has the highest salaries on average, we can compare the mean salaries:

- Company A: Mean = $23,000
- Company B: Mean = $29,000
- Company C: Mean = $22,000
- Company D: Mean = $24,000

Among these mean salaries, **Company B** has the highest average salary at $29,000.

**Answer: Company B**