a) Mean salary = (42,900 + 38,000 + 48,500 + 57,500 + 99,000 + 44,500) / 6 = $55,633.33
b) Outliers: $99,000. The trimmed mean is calculated by removing the outlier and then taking the mean of the remaining values.
Trimmed mean = (42,900 + 38,000 + 48,500 + 57,500 + 44,500) / 5 = $46,280.00
c) The difference between the trimmed mean and the arithmetic mean is due to the presence of the outlier ($99,000). The outlier has a significant impact on the arithmetic mean, pulling it up to a higher value. By removing the outlier in the trimmed mean calculation, the overall salary average is more balanced and representative of the majority of salaries at Kyle's Plumbing Store.
The annual salaries for employees at Kyle's Plumbing Store are: $42 900.00, $38000.00, $48 500.00, $57 500.00, $99 000.00, $44 500.00
a) Calculate the mean salary.
b) Identify any outliers and calculate the trimmed mean.
c) Explain why there is a difference between the trimmed mean and the arithmetic mean
1 answer
1 answer