In Tokyo, construction workers earn an average of ×420,000 (yen) per month with a standard deviation of ×20,000, while in Hamburg, Germany, construction workers earn an average of €3,200 (euros) per month with a standard deviation of €57. Who is earning relatively more, a worker making ×460,000 per month in Tokyo or one earning €3,300 per month in Hamburg?
A)The workers are the same in relative terms.
B)The Tokyo worker is relatively better off.
C)The Hamburg worker is relatively better off.

Question

Quizplus · Accepted Answer

To determine who is earning relatively more, we calculate how many standard deviations above the mean each worker's salary is. For Tokyo: (¥460,000 - ¥420,000) / ¥20,000 = 2 standard deviations above the mean. For Hamburg: (€3,300 - €3,200) / €57 ≈ 1.75 standard deviations above the mean. Thus, the Tokyo worker is relatively better off, being further above the average in terms of standard deviations.

In Tokyo, Construction Workers Earn an Average of ×420,000 (Yen)