Question

A company has the pay scales below , with the percent of employees receiving that pay listed. Find the best value to represent an average salary at this company. ( round to the nearest dollar ) Job Salary Percent of Employees Entry $30,000 60% Expert $40,000 38% CEO $125,000 2%

Answer 1

The given table is the following:

Job Salary % of Employees
-------- ------------ ----------------------
Entry $30,000 60%
Expert $40,000 38%
CEO $125,000 2%

Let n = total number of employees.

Entry:
Number = 0.6n
Pay total = 0.6n*(30,000) = $18,000n

Expert:
Number = 0.38n
Pay total = 0.38n*(40,000) = $15,200n

CEO:
Number = 0.02n
Pay total = 0.02n*(125,000) = $2,500n

Total pay = 18,000n + 15,200n + 2,500n = $35,700n
Average salary = 35,700/n = $35,700

Answer: $35,700