Question

The salaries of 4 employees are $30,000, $32,000, $40,000, and $100,000. If an employee wants to demonstrate the need for a raise, should they use the mean or the median to show that they are being underpaid?

Answer 1

The employee wants to get the raise so he should show the measure which is larger.

The mean salary of 4 employees is = Sum of all salaries / 4
Mean salary = $ 50,500

The median salary is = 1/2 (32000+ 40000) = $ 36, 000

Since, the mean salary of 4 workers is larger than the median salary, he should use the mean salary to ask for a raise.