Math

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99 employees in a factory earn a salary of $28,000 per year, while the CEO makes $766,000 annually. What are the mean and median salaries for all 100 people? Is the mean or the median the more appropriate measure of "center" in this case? Explain.
I have been working at this all evening and can not seem to feel comfortable with my solutions. Could some help me please and show me how the answer was found. Thank you!

  • Math -

    Half the employees earn less than the median and half earn more. I would call the median $28,000.

    for the mean:
    mean = [(99*28 + 1*766)/100] thousand
    = $35,380

    The mean is very misleading because so much of it is earned by one person called an "outlier".

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