Example 1 - the CEO's salary is an extreme outlier causing...

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Example 1 Given the four annual salaries of a corporation shown in Table 2, determine the mean and the  median.  The mean of these four salaries is $275,000. The median is the average of the middle two salaries,  or $40,000. In this instance, the median appears to be a better indicator of central tendency because 
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Unformatted text preview: the CEO's salary is an extreme outlier, causing the mean to lie far from the other three salaries. Table 2. Four Annual Salaries Position Salary CEO $1,000,000 Manager $50,000 Administrative assistant $30,000 Custodian $20,000...
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This note was uploaded on 11/15/2011 for the course QMST 2333 taught by Professor Mendez during the Fall '08 term at Texas State.

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