Qso 510 - Quantitative Analysis
Essay by thatreshooter • June 19, 2016 • Coursework • 372 Words (2 Pages) • 1,519 Views
6/3/16
QSO 510 - Quantitative Analysis
Southern New Hampshire University
Data Set 1
- Methodology
By using Excel we are able to store numerical inputs and perform calculation on data sets. By inputting the proper information we are able to calculate the mean, median, mode, sample variance, and sample standard deviation. The following excel formulas were used in the calculation of each set of statistical outputs:
- Mean – =AVERAGE
- Median – =MEDIAN
- Mode – =MODE
- Sample Variance – =VAR
- Sample Standard Deviation – =STDEV
Each of these mathematical terms and Excel formulas describes a slightly different way of looking at a set of numbers. The data set provided was run using these formulas and the following results were obtained:
Sample of Annual Salaries of Plant Operators | |
Annual Salary | |
Operator 1 | $74,343.00 |
Operator 2 | $70,532.00 |
Operator 3 | $67,956.00 |
Operator 4 | $78,024.00 |
Operator 5 | $80,197.00 |
Operator 6 | $69,444.00 |
Operator 7 | $81,655.00 |
Operator 8 | $73,438.00 |
Operator 9 | $79,111.00 |
Operator 10 | $75,337.00 |
Operator 11 | $71,764.00 |
Operator 12 | $80,550.00 |
SUM | $902,351.00 |
MEAN | $75,195.92 |
MEDIAN | $74,840.00 |
MODE | #N/A |
SAMPLE VARIANCE | $21,962,862.27 |
SAMPLE STANDARD DEVIATION | $4,686.46 |
- Analysis
By doing a statistical analysis we are able to extrapolate the data to come to a few conclusions. We see that the mean and the median are quite similar, which indicates that there are limited outliers in the salary range for the operator position. Best practice in compensation comparisons is to primarily consider the median/midpoint and the reason is quite simple. The mean or average is very sensitive to outliers, or abnormally low or high values, while outliers much less affect medians. Being that these two values are similar, we can conclude that there are not operators who are outliers in the pay scale for this position. The standard deviation, which is the measure of the dispersion of a set of data from its mean, allows us to gain some insight into how wide of a range of salaries are represented for the same job. If we look at the standard deviation as it relates to +/- one deviation from the mean, we find that range to be $70,509.46 and $79,882.37. Most salaries fall within this range, and those that do not are not far off. This would result in a bell curve of fairly even distribution for the salary ranges listed. Since no numbers were found to be repeating, we get an “#N/A” for the mode calculation.
...
...