P07StatisticsBeginnerCalculate10 min
Mean vs Median With a Salary Outlier
Choose the summary statistic that best represents a skewed salary distribution.
#mean#median#outliers
Scenario
A hiring report contains salaries for a small team, including one executive compensation package far above the rest.
Problem statement
Decide whether the mean or median is the more representative typical salary and explain why.
Your Task
- Calculate or estimate both statistics.
- Describe the effect of the outlier.
- State when the mean would still be useful.
Salary data
62,000, 66,000, 68,000, 71,000, 75,000, 620,000
Related Concepts
Skewed distributionsOutliersRobust statistics
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Mark it complete when you have reasoned through the solution in your own words.