# statistic

posted by on .

Which "average" would be best to use in the following situation?

The accountant for a small company is asked to determine the average salary of its employees. The company is owned by two brothers who each make over \$300,000 per year. The accountant makes \$80,000 per year. The salaries of the other eighteen employees of the company vary by years of experience and job title, but all fall in the \$25,000 - \$45,000 range.

my answer this would be a mean , not a mode or median.

• statistic - ,

The mean would not reflect the salaries of the 18 employees -- but would be way above their salaries.

In this case I think the median would give a more accurate picture of the average salary of the company's employees.

• statistic - ,

I guess to look at it would fall into the salary range. i was looking at average is how i got my answer thanks!

• statistic - ,

You're welcome.

(2 * 300,000) + 80,000 + (18 * 35,000) / 21 = 62,380.95

That is almost \$20,000 higher than the highest paid employee.