posted by Barbara .
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!
Median = $28,000
Mean = [(99 * 28,000) + 766,000]/100 = ?
The mean functions as a fulcrum (balance point), therefore it is most influenced by deviant scores. Compare the above value of the mean to one without the CEO's salary. Therefore the median is the best measure of central tendency with a skewed distribution.