- Aug 19, 2013
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Question
Company A and Company B have the same average starting salary, which is $80,000 pa. However, the value of standard deviation (SD) for starting salaries at Company A is $20,000, while at Company B it is $5,000
Just wondering if I am missing something in this question? First part of the question seems fairly straight forward, eg Company A has a variation of $20k which means 68% of salary fall between $60k and $100k with company be it 68% fall between $75k and $85k. Correct?
The second part of the question doesn't seem to be straight forward as you can't definitively answer which company would pay you more. eg: could earn more eg $100k, but you could also earn less than company B and only get $60k - is it just that company B is more of a sure thing, could negotiate higher for company a or is there something I am missing here?
Any help appreciated
Company A and Company B have the same average starting salary, which is $80,000 pa. However, the value of standard deviation (SD) for starting salaries at Company A is $20,000, while at Company B it is $5,000
- Assuming that the data is normally distributed, and following the Empirical Rule,
- 68.2% of starting salaries fall between what ranges for the two companies?
- (3 marks)
- Given the difference in SD, which of the two companies would you rather work for? Explain why in a few sentences. (3 marks)
Just wondering if I am missing something in this question? First part of the question seems fairly straight forward, eg Company A has a variation of $20k which means 68% of salary fall between $60k and $100k with company be it 68% fall between $75k and $85k. Correct?
The second part of the question doesn't seem to be straight forward as you can't definitively answer which company would pay you more. eg: could earn more eg $100k, but you could also earn less than company B and only get $60k - is it just that company B is more of a sure thing, could negotiate higher for company a or is there something I am missing here?
Any help appreciated