Question

Ricardo has just taken over his parents' restaurant. He knows after working there for many years that one of the major concerns among employees is competitive pay. Specifically, Ricardo's servers think that they are paid less than servers in similar restaurants.

To help investigate this issue, Ricardo employs a company that specializes in gathering data about pay rates for similar positions across the state. The company provides Ricardo with the following box-and-whisker plot.


Ricardo's goal is to provide his servers with competitive pay compared to other restaurants in the state. He currently pays his servers hourly rates ranging from $8.50 to $11.50, depending on experience and seniority. His median server pay is $8.83. Based on what he sees in the plot above, which of the following is an appropriate conclusion for Ricardo?
A.
Ricardo's median is consistent with the state median. Ricardo should leave his servers' pay as it is.
B.
Most of Ricardo's servers are paid more than the state median. Ricardo should leave his servers' pay as it is.
C.
Ricardo's minimum, maximum, and median are all significantly less that those of the state. Ricardo should increase his servers' pay.
D.
Almost half of other servers across the state make more than the highest paid of Ricardo's servers. Ricardo should increase his servers' pay.

Answer 1

D

Explanation:

D

Answer 2

The most appropriate conclusion for Ricardo is: C. Ricardo's minimum, maximum, and median are all significantly less than those of the state. Ricardo should increase his servers' pay.

Let's analyze the information given to determine the appropriate conclusion for Ricardo:

Median: Ricardo's median server pay is $8.83, which falls within the lower quartile of the state median.

Minimum: Ricardo's minimum server pay is $8.50, which is significantly less than the state's minimum server pay.

Maximum: Ricardo's maximum server pay is $11.50, which is lower than the state's median and significantly lower than the state's maximum.

Based on this analysis, we can eliminate options A and B:

A: Ricardo's median is not consistent with the state median.

B: Most of Ricardo's servers are not paid more than the state median.

Now let's compare options C and D:

C: This option accurately describes Ricardo's server pay compared to the state data.

D: This option only focuses on the upper quartile of the state data, ignoring the lower quartiles where most of Ricardo's servers fall.

Therefore, the most appropriate conclusion for Ricardo is:

C. Ricardo's minimum, maximum, and median are all significantly less than those of the state. Ricardo should increase his servers' pay.