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17 November, 18:25

A friend tells you to apply for a sales job at a certain company because the mean income of salespeople last year was $47,500. Last year, 6 salespeople earned $33,000, 3 earned $46,000, 2 earned $42,000 and 1 earned $150,000. Would you apply for the job based on what your friend says? Explain in reference to the 3 measures of center.

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  1. 17 November, 19:35
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    No, I will not apply for the job based on what my friend says because this a biased distribution, the salary of 150,000 pulls the mean away from the center towards the right. For our problem, the mean and median differ by 10,000, the mean and the mode differ by 14,500, and the median and the mode better represents the central tendency for the distribution of the income of salespeople last year at a certain company.

    Step-by-step explanation:

    1. Let's calculate the mean of the income of salespeople last year at a certain company, this way:

    μ = (6 * 33,000 + 2 * 42,000 + 3 * 46,000 + 1 * 150,000) / 12

    μ = 570,000/12

    μ = $ 47,500

    2. Let's calculate the median of the income of salespeople last year at a certain company, this way:

    Median = (6th term + 7th therm) / 2

    Median = (33,000 + 42,000) / 2

    Median = 75,000/2

    Median = $ 37,500

    3. Let's calculate the mode of the income of salespeople last year at a certain company, this way:

    Mode = value that occurs the most frequently in our data set of the income of salespeople last year at a certain company

    Mode = $ 33,000
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