Question

In Alioth Industries, 20% of the employees have advanced degrees and the others have bachelor's degrees. The average salary for the employees with advanced degree is $350,000, and the average salary for employees with bachelor's degrees is $100,000. What is the average salary, in dollars, for all the employees at Alioth Industries?

Answer 1

$150,000

Explanation:

The weighted average is ...

(20%×$350,000 + 80%×$100,000)/(20% +80%) = $150,000

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Each salary is weighted by its frequency of occurrence.