A Clerk Entering Salary Data into a Company Spreadsheet Accidentally

question 138

Essay

A clerk entering salary data into a company spreadsheet accidentally omitted a "0" in the CEO's salary,listing it as $155,000 instead of $1,550,000.Explain how this error will affect these summary statistics for the company payroll: a)measures of centre: median and mean; and b)measures of spread: range,IQR,and standard deviation.

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Definitions:

Sales Discounts

Price reductions offered by sellers to encourage prompt payment by buyers.

Credit Sales

Sales made by a business where payment is allowed to be deferred until a later date.

Perpetual Inventory System

An inventory management method where updates are made continuously to record sales and purchases instantly.

Merchandise Inventory Account

An account on the balance sheet that represents the cost of goods available for sale, including items purchased for resale.