Chapter 4, Problem 29E

(a)

To determine

To find: the mean and median wage.

Answer to Problem 29E

Mean wage is $525 and median wage is $450

Explanation of Solution

Given:

In ascending order

400, 400, 400, 400, 400, 400, 500, 500, 500, 500, 700, 1200

Calculation:

  $Mean=\frac{400+400+400+400+400+400+500+500+500+500+700+1200}{12}$

Median is the 6^th and 7^th place values so

  $\begin{array}{l}\frac{\$500+\$400}{2}\\ =\$450\end{array}$

Median is $450

(b)

To determine

To Calculate: the numbers of employees earn more than the mean wage.

Answer to Problem 29E

Two

Explanation of Solution

Two

Only 700 and 1200 are larger than 525.

(c)

To determine

To find: that the measure of centre best explains a typical wage mean or median.

Answer to Problem 29E

Median

Explanation of Solution

It is observed that only two workers can earn more than mean wage.

So the median is more descriptive.

(d)

To determine

To find: that the measure of spread would best explain the payroll range, IQR or the standard deviation.

Answer to Problem 29E

IQR

Explanation of Solution

IQR

Standard deviation is for normally distributed data sets. Range is affected by outlines (1200). The IQR is not affected significantly by outliners.