Jamal found the mean hourly wage of employees at his company using the data in the table. In a report he stated, “The typical salary at the company is about $23.00 per hour.” How is this misleading?
$6.50
$6.50
$6.50
$6.50
$6.50
$6.50
$6.50
$7.50
$7.50
$7.50
$7.50
$7.50
$7.50
$7.50
$7.50
$60.00
$65.00
$75.00
$75.00
$75.00
A. The mean is not a good measure of the salaries because five employees have salaries far above the other fifteen employees’ salaries.
B. The mean of the data is not about $23.00.
C. Jamal should always use the highest wage.
D. His statement is not misleading.
A. The mean is not a good measure of the salaries because five employees have salaries far above the other fifteen employees’ salaries.
The correct answer is A. The mean is not a good measure of the salaries because five employees have salaries far above the other fifteen employees’ salaries.
This is misleading because the mean is heavily influenced by the outliers (the five employees with salaries far above the others), which skews the average higher. Therefore, it is not an accurate representation of the typical salary at the company.