Question

A small manufacturing company with 52 employees has annual salaries distributed such that the mean is $25,459, the median is $24,798 and the mode is $24,000. An additional foreman is hired at an annual salary of $50,700. What measure of central location that is most affected by the addition of this salary?

Answer 1

Answer: Arithmetic Mean

Step-by-step explanation:

The Arithmetic Mean is the measure of Central location that would be most affected by the new addition to the company.

Why?

Let's work by elimination.

The Mode will not be affected because it is simply the most frequently appearing variable and $50,700 is too high to be it. Looking at the mean figure and the modal figure. We can deduce that most of the salaries are within a certain range within which $50,700 does not fall.

As for the median which is the number in the middle of the series, again the majority of this type of data is within a certain range. This means that $50,700 is probably on the end of one side of the data. This means that it can't affect the median very much.

That leaves the Mean (Arithmetic Mean). An addition such as this to the current range will surely habe an effect of increasing it more than the current salaries can. So Arithmetic Mean is the current answer.