You accept a job selling high-end knives door-to-door on commission because you were informed that company employees, on average, earn $60,000 a year. After three months of making less than $1,000 a month, you learn that most other salespeople are making less than $20,000 a year. If the company has 20 sales people, two managers, and one president, how can the company's claim still be correct?

Question

Quizplus · Accepted Answer

The company's claim can still be correct if the mean of all salaries is $60,000 because the managers and president likely earn much higher salaries than the salespeople. This would significantly inflate the overall average, even if most salespeople earn much less. The median salary (choice A) or modal salary (choice B) cannot be determined from the information given. The median of all salaries being $60,000 because of the managers and president (choice C) is possible but not necessarily true.

You Accept a Job Selling High-End Knives Door-To-Door on Commission