Question

The laborers and administration of a Jean company are having a disagreement. The laborers want to use a particular measure of income to prove that a raise is needed but the administration want to use a different measure of income to prove a raise is not needed. Between the mean and the median which would EACH GROUP be more likely to choose? Why?

Answer 1

The laborers would use the median.

The administration would use the mean.

Reason:
The mean is affected by extreme values. The median is not affected by extreme values.

In case the median is taken as average, it will have lower value because it will not be affected by high salary of Top brass of the company earning huge salary. The laborers will use this low average to argue that employees are low paid and a raise is needed.

In case the mean is taken as average, it will have higher value because it will be affected by high salary of Top brass of the company earning huge salary. The administration will use this high average to argue that employees are already well paid and a raise is not needed.