The mean would not reflect the salaries of the 18 employees -- but would be way above their salaries.
In this case I think the median would give a more accurate picture of the average salary of the company's employees.
Which "average" would be best to use in the following situation?
The accountant for a small company is asked to determine the average salary of its employees. The company is owned by two brothers who each make over $300,000 per year. The accountant makes $80,000 per year. The salaries of the other eighteen employees of the company vary by years of experience and job title, but all fall in the $25,000 - $45,000 range.
my answer this would be a mean , not a mode or median.
3 answers
I guess to look at it would fall into the salary range. i was looking at average is how i got my answer thanks!
You're welcome.
(2 * 300,000) + 80,000 + (18 * 35,000) / 21 = 62,380.95
That is almost $20,000 higher than the highest paid employee.
(2 * 300,000) + 80,000 + (18 * 35,000) / 21 = 62,380.95
That is almost $20,000 higher than the highest paid employee.
1 answer