comparing mean and median\nwhich data set would be better represented by the mean rather than the median due…

comparing mean and median\nwhich data set would be better represented by the mean rather than the median due to the presence of an outlier?\nsalaries of a small tech startup: $50,000, $52,000, $53,000, $55,000, $1,000,000\nannual bonuses of five employees: $500, $520, $530, $550, $10,000\nhourly wages of five workers: $15, $15.50, $16, $16.50, $50\ncommission earned by five salespeople: $1,000, $1,050, $1,100, $1,150, $2,000

comparing mean and median\nwhich data set would be better represented by the mean rather than the median due to the presence of an outlier?\nsalaries of a small tech startup: $50,000, $52,000, $53,000, $55,000, $1,000,000\nannual bonuses of five employees: $500, $520, $530, $550, $10,000\nhourly wages of five workers: $15, $15.50, $16, $16.50, $50\ncommission earned by five salespeople: $1,000, $1,050, $1,100, $1,150, $2,000

Answer

Explanation:

Step1: Recall the effect of outliers

Outliers affect the mean more than the median. We need to find the data - set where the outlier doesn't skew the overall representation when using the mean.

Step2: Analyze each data - set

  • For the salaries of a small tech startup: The outlier ($1,000,000) is so large compared to the other values ($50,000 - $55,000) that the mean will be highly skewed and not represent the typical salary.
  • For the annual bonuses of five employees: The outlier ($10,000) is much larger than the other values ($500 - $550), and the mean will be pulled up by this value and not represent the typical bonus.
  • For the hourly wages of five workers: The outlier ($50) is very different from the other values ($15 - $16.50), and the mean will be affected and not represent the typical wage.
  • For the commission earned by five sales - people: The values ($1,000, $1,050, $1,100, $1,150, $2,000) are relatively close together. The outlier ($2,000) does not have as large an impact on the mean compared to the other data - sets, and the mean can still represent the typical commission amount.

Answer:

commission earned by five salespeople: $1,000, $1,050, $1,100, $1,150, $2,000