Question

Carlos and Devon both accepted new jobs at different companies. Carlos's starting salary is $42,000 and Devon's starting salary is $40,000. They are curious to know who has the better starting salary, when compared to the salary distributions of their new employers. A website that collects salary information from a sample of employees for a number of major employers reports that Carlos's company offers a mean salary of $52,000 with a standard deviation of $8,000. Devon's company offers a mean salary of $48,000 with a standard deviation of $5,000. Find the z-scores corresponding to each of their starting salaries. Round to two decimal places, if necessary.

Answer 1

Answer:

By comparing the Z-values both are below the average salary in their firms but Devon is even lower as as 1.60 below the mean

Carlon has a better comparative salary as is 1.25 points below the mean

Explanation:

we have to normalize each distribution to know the Z-values for Carlos and Devon:

$\frac{X-mean}{deviation} =Z$

Carlos:

(42,000 - 52,000)/8,000 =-1.25

Devon:

(40,000-48,000)/5,000 = -1.60