The fulfillment company employs 20 people with the following annual salaries: $1

Question

The fulfillment company employs 20 people with the following annual salaries:

$115,000 - President $ 90,000 – Vice president
$ 70,000 – Sales Manager $ 60,000 – Production Manager
$ 30,000 – Warehouse Supervisor - $ 18,000 – Four shipping clerks
$ 20,000 – Loading Dock Supervisor $ 17,000 – Ten warehouse laborers

a. I calculated the mean, median, and mode for the salaries.
Answer: Mean = $52,500
Median = $45,000 Mode = No mode

Here is the remaining of what I simply do not know the answers to:

For this company, does the mean give an accurate description of the salaries? Why or why not?

AND

Which statistic would this company’s labor union representative be most likely to cite during contract negotiations and why?

Explanation / Answer

salary from low to high

17000, 17000, 17000,17000,17000,17000,17000,17000,17000,17000,18000, 18000,18000, 18000, 20000,30000,60000,70000,90000,115000

mean = (17000*10+18000*4+20000+30000+60000+70000+90000+115000)/20 = 31350

median = (17000+18000)/2 = 17500

mode = 17000

because very high salaries of presidents and manager, mean is skewed to high end. it is not an accurate description of the salaries. labor union would be most likely to cite median salary because it represent majority of workers' salaries.

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