A clerk entering salary data into a company spreadsheet accidentally put an extra "0" in the highest

employee salary (the boss's salary!), listing it as $1,500,000 instead of $150,000. How does this

error affect the measures of center (median and mean)?

A. The median will be the same. The mean will be too small.

B. The median will be the same. The mean will be too large

C. The median will be too small and the mean will be too large,

D. The median and the mean will both be too large.

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Answer:

The correct option is B.

Step-by-step explanation:

The median (m) is a measure of central tendency. To obtain the m, we assemble the data in arising order. If the data is odd, the m is the mid-value. If the data is even, the m is the arithmetic-mean of the two mid-values.

The mean is the average value of the data set. It is computed by dividing the sum of all the values in data set by the number of values.

So, the mean considers all the values in the data set. But the median considers only one value.

It is provided that the clerk entering salary data into a company spreadsheet accidentally put an extra "0" in the highest  employee salary (the boss's salary!), listing it as $1,500,000 instead of $150,000.

The highest salary will be taken into account while the computation of mean. But it would not be considered while determining the median.

So, the median salary will remain same.  But the mean salary will change.

And since the highest salary is increasing from $150,000 to $1,500,000 the mean will also increase.

Thus, the correct option is B.

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