Question

The International Average Salary Income Database provides a comparison of average salaries for various professions. The data are gathered from publications and reports obtained directly from government agencies (such as the US Bureau of Labor Statistics) or from the International Labour Organization. Suppose an industrial/organizational psychologist is interested in the relationships between job satisfaction, job performance, and job compensation. She has data from five different countries on the average monthly salaries paid to computer programmers. She begins her analysis by converting all of the salary data into US dollars:
Country Average Monthly Salary (U.S dollar) Standard deviation (U.S. dollar) Original currency
Brazil $1351 337.80 Real
the United States $3,370 $1,011.00 Dollar
China $165 $24.80 Yuan
Slovakia $646 $96.80 Koruna
Kuwait $2697 $809.20 Dinar

To appreciate the differences among the countries, she calculates the z scores for an accountant making $1,500 per month.

Country z score for $1500 salary
Brazil
the United States
China
Slovakia
Kuwait


Suppose an accountant in each Of the five countries listed is offered a salary of $1,500 per month. Using the z scores and assuming that the accountant prefers a salary that has a higher relative value, the accountant from _________ will likely be the most pleased with the Offer, because a salary of $1,500 per month for this country corresponds to the_____

Answer 1

Solution :

The monthly average salary and the standard deviation of the salaries of five different countries are provided. A person is interested in the relationship between the job performance, job satisfaction and the job compensation of the five different countries and try to compare them.

She calculated the z scores for accounting that makes $ ,500 per month as :

Country              z-score for salary $ 1,500

Brazil                       $\frac{1500-1351}{337.80} = 0.44$

US                          $\frac{1500-3370}{1011} = -1.85$

China                     $\frac{1500-165}{24.80} = 53.83$

Slovakia                 $\frac{1500-646}{96.80} = 8.82$

Kuwait                    $\frac{1500-2697}{808.20} = -1.48$

From above it is clear that an account from China getting  z score of 53.83 will ne more pleased than other countries because the salary of $1,500 in one month for this particular country corresponds to the highest z score.