If the mean starting salary is $95K and the median is $118K, what can be inferred about the salary distribution?

If the mean starting salary is $95K and the median is $118K, what can be inferred about the salary distribution?

• A. It is normally distributed.
• B. It is positively skewed.
• C. It is negatively skewed.
• D. It is bimodal.

Answer: (C)

When analyzing the mean and median of a salary distribution, the relationship between these two measures can provide insight into the shape of the distribution. In this case, the mean starting salary is $95K, while the median is $118K. When the mean is less than the median, it typically indicates that the distribution is negatively skewed. This occurs because the mean is influenced by lower values within the dataset, which pulls it down relative to the median. In a negatively skewed distribution, there are more higher values, causing the median (which represents the middle value) to be higher than the mean. Normal distributions would generally have the mean and median close in value, while a positively skewed distribution would show the mean being greater than the median. A bimodal distribution would exhibit two distinct peaks, which is unrelated to the scenario provided. Thus, the conclusion drawn from the salaries indicates a negatively skewed salary distribution, aligning with the provided mean and median values.

When analyzing the mean and median of a salary distribution, the relationship between these two measures can provide insight into the shape of the distribution. In this case, the mean starting salary is $95K, while the median is $118K.

When the mean is less than the median, it typically indicates that the distribution is negatively skewed. This occurs because the mean is influenced by lower values within the dataset, which pulls it down relative to the median. In a negatively skewed distribution, there are more higher values, causing the median (which represents the middle value) to be higher than the mean.

Normal distributions would generally have the mean and median close in value, while a positively skewed distribution would show the mean being greater than the median. A bimodal distribution would exhibit two distinct peaks, which is unrelated to the scenario provided.

Thus, the conclusion drawn from the salaries indicates a negatively skewed salary distribution, aligning with the provided mean and median values.