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Question

When Steve Jobs was CEO of Apple, he earned an annual salary of $1. The CEOs of the 50 largest U.S companies had a mean salary of $1,449,779 and a standard deviation of $527,651

A) What is the difference between Jobs' salary and the mean CEO salary?

B) How many standard deviations is that (the difference found in part (a))?

C) Convert Steve Jobs' salary to a z-score

D) Unusual or usual salary ( z-score from -2 and 2 is considered to be usual)

Answer 1

Step 1:

(a)

The annual salary of steve jobs $1.

The mean salary of the 50 largest U.S companies CEOs is $1,449,779.

The standard deviation is $527,651.

The difference between Jobs salary and mean CEOs salary is = $1,449,779 - $1.

                                                                                      = $1,449,778.

The difference between Jobs salary and mean CEOs salary is  $1,449,778.

Solution :

The difference between Jobs salary and mean CEOs salary is $1,449,778.

Answer 2

Step 3:

(c)

Mean score = $1,449,779    standard deviation = $527,651.

Formula for z - score .

Where ‘x ’ is the selected item.

            is the mean.

           is the standard deviation.

The annual salary of steve jobs $1.

z - score for steve jobs salary is :

So the z-score for steve jobs is .

Solution :

The z-score for steve jobs is .

Answer 3

Step 2:

(b)

The difference between Jobs salary and mean CEOs salary is $1,449,778.

The standard deviation is $527,651

Difference between Jobs salary and mean CEOs salary = $1,449,778 = n * standard deviation.

1,449,778 = n * 527,651.

n = 1,449,778 / 527,651.

n = 2.7476077 .

So the 2.747 time of the standard deviations is the difference between Jobs salary and mean CEOs salary.

Solution :

Difference between Jobs salary and mean CEOs salary is 2.747 time of the standard deviations.