Question

The annual pay salaries for managers at two companies are listed below. • Company A: $32,000, 535,000, 540,200, $44,500, 576,700 • Company B: 536,500, $37.000, S41,750, $42,800, 345,000 Given the distribution of salaries, explain which measure of central tendency, the mean or the median, is best suited for comparing salaries across the companies. Use the mean and median values for each distribution to support your answer.

Answer 1

Company A

mean

`\begin{gathered} ((32,000+44,500+535,000+540,200+576,700))/(5) \\ \\ =345,640 \end{gathered}`

the mean is $345.640

median

`535,000`

because it is the central data among all the values

Company B

mean

`\begin{gathered} ((37,000+41,750+42,800+345,000+536,500))/(5) \\ \\ =200,610 \end{gathered}`

the man is %200,610

median

`42,800`

the most appropriate measure is mean because is an average of pays of each company