Salary increase for the owners. Last year, a small accounting firm paid each of its five clerks $40,000, two junior accountants $75,000 each, and the firm’s owner $455,000. (a) What is the mean salary paid at this firm? How many of the employees earn less than the mean? What is the median salary? (b) This year, the firm gives no raises to the clerks and junior accountants, while the owner’s take increases to $495,000. How does this change affect the mean? How does it affect the median?
Inverse Normal Distribution
The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.
Mean, Median, Mode
It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.
Z-Scores
A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.
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Salary increase for the owners. Last year, a small accounting firm paid each of its five clerks $40,000, two junior accountants $75,000 each, and the firm’s owner $455,000. (a) What is the mean salary paid at this firm? How many of the employees earn less than the mean? What is the median salary? (b) This year, the firm gives no raises to the clerks and junior accountants, while the owner’s take increases to $495,000. How does this change affect the mean? How does it affect the median?
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