You handle the payroll at a small company whose president boasts that the average salary at his company is $54,000.

What is the statistical reason for this distorted view of the company's average pay? Then, using the salaries listed below for everyone that works at this company determine the mean, median, mode, and range of salaries for this small company.

Salaries: $200,000 (president's salary); $100,000 (vicepresident's salary)

Other eight employees earn $30,000 each.

What will be an ideal response?

Mean = $54,000 (add up the scores and divide by the total number of scores) Median = $30,000 (the middle score)

Mode = $30,000 (the most frequently occurring score)

Range = 170, 000 (difference between the highest and lowest scores in a group of scores)

What is the statistical reason for this distorted view of the company's average pay? Then, using the salaries listed below for everyone that works at this company determine the mean, median, mode, and range of salaries for this small company.

Salaries: $200,000 (president's salary); $100,000 (vicepresident's salary)

Other eight employees earn $30,000 each.

What will be an ideal response?

Mean = $54,000 (add up the scores and divide by the total number of scores) Median = $30,000 (the middle score)

Mode = $30,000 (the most frequently occurring score)

Range = 170, 000 (difference between the highest and lowest scores in a group of scores)