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Representativeness of sample; measures of central tendency

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Problem 1 (A through C), on page 400. Hint: Answer Problem 1 Part C using the results from Part B.

Consider the frame of 52 full-time employees of Beta Technologies, Inc. Beta's hr manager has collected current annual salary figures and related data for these employees. In particular, these data include each selected employee's gender, age, number of years of employment at Beta, the number of years of postsecondary education, and annual salary.

a. Compute the mean, median, and standard deviation of the annual salaries for the 52 employees in the given frame.

b. Use Excel to choose a simple random sample of size 15 from this frame.

c. Compute the mean, median, and standard deviation of the annual salaries for the 15 employees included in your simple random sample. Compare these statistics with your computed descriptive measures for the frame obtained in part a. Is your simple random sample representative of the frame with respect to the annual salary variable?"

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Solution Summary

In this solution, 15 employees are randomly selected and their measures of central tendency to the 52 employee population compared. A graph allows you to "see" why statistics are misleading on the sample.