Salary Conversions You Learn That Your Company Is Sending You

question 94

Essay

Salary conversions You learn that your company is sending you and several other employees to staff a new office in China. While there everyone will earn the equivalent of their current salary, converted to Chinese currency at the rate of 8 yuans per dollar. In addition, everyone will earn a weekly foreign living allowance of 200 yuans. For example, since you are earning $1000 per week, your weekly salary in China will be 1000 x 8 + 200 = 8200 yuans.
a. Shown are some summary statistics describing the current salaries of this group being sent overseas. Fill in the table to show what these statistics will be for the salaries you all will earn while in China. $\begin{array}{|l|c|l|}\hline \text { Statistic } & \text { In the US } & \text { In China } \\\hline \text { Minimum salary } & \$ 400 & \\\hline \text { Standard deviation } & \$ 250 & \\\hline \text { Median } & \$ 750 & \\\hline \text { IQR } & \$ 300 & \\\hline\end{array}$

b. Among this group of employees going to China, your US salary has a z-score of $+ 1.20$ . What will your new $z$ -score be, based on everyone's China salary?

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Definitions:

Sales Discounts

Reductions from the listed or invoice price of goods or services provided to customers, often used as an incentive for early payment.

Accounts Receivable

Funds that customers owe a company for products supplied or services rendered but have not yet been paid for.

Invoice Price

The price listed on an invoice, representing the amount the buyer agrees to pay the seller for goods or services provided.

Credit Terms

The conditions under which credit is extended by a seller to a buyer, including payment deadlines and interest rates.