Salary Conversions You Learn That Your Company Is Sending You

question 48

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 $$z - s c o r e \text { of } + 1.20$$
What will your new z-score be, based on everyone's China salary?

---

Definitions:

Domestic Surplus

The excess of a country's production over its domestic consumption, often leading to exports.

Domestic Shortage

A Domestic Shortage occurs when the quantity demanded of a good or service in a country exceeds the quantity supplied at the current market price, leading to scarcity.

World Price

The price at which goods are traded on the global market.

Supply Curves

Graphical representations showing the relationship between the price of a good and the quantity of that good that suppliers are willing to sell.