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

The dispersion in secretarial compensation across firms is calculated as the difference between the highest-paying and lowest-paying employers divided by the average of the two. In this case, the dispersion is ($42,000 - $30,000) / (($42,000 + $30,000) / 2) = $12,000 / $36,000 = 0.4, or 40%.

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