You have determined that the lowest-paying employer pays it secretaries a mean total compensation of $30,000,and the highest-paying employer pays its secretaries a mean total compensation of $42,000. What is the dispersion in secretarial compensation across firms?

Question

Quizplus · Accepted Answer

To calculate the dispersion in compensation, we need to calculate the range between the highest and the lowest mean total compensation.

Range = Highest-mean total compensation - Lowest-mean total compensation

Range = $42,000 - $30,000 = $12,000

Now, to express this range as a percentage, we need to divide it by the lowest-mean total compensation:

Dispersion = (Range / Lowest-mean total compensation) x 100

Dispersion = ($12,000 / $30,000) x 100 = 40%

Therefore, the dispersion in secretarial compensation across firms is 40 percent, which is option B.

You Have Determined That the Lowest-Paying Employer Pays It Secretaries