Mr. VanCott started his own machine shop several years ago. His business has grown and become very successful in recent years.

Currently he employs 14 people, including himself, and pays the following annual salaries:
Owner, President $80,000 Worker $25,000 Business Manager 50,000 Worker 25,000 Production Manager 40,000 Worker 25,000 Shop Foreman 35,000 Worker 20,000 Worker 30,000 Worker 20,000 Worker 30,000 Worker 20,000 Worker 28,000 Worker 20,000

a. Calculate the four “averages”: mean, median, mode, and midrange.

b. Draw a dotplot of the salaries and locate each of the four averages on it.

c. Suppose you were the feature writer assigned to write this week’s feature story on Mr. VanCott’s machine shop, one of a series on local small businesses that are prospering. You plan to interview Mr.
VanCott, his business manager, the shop foreman, and one of his newer workers.
Which statistical average do you think each will give when asked, “What is the average annual salary paid to the employees here at VanCott’s?” Explain why each person interviewed has a different perspective and why this viewpoint may cause each to cite a different statistical average.

d. What is there about the distribution of these salaries that causes the four “average values” to be so different?