The median salary of Mr Pang's company is $10000$. Mr Pang therefore thinks that nobody in the company earns more than $20000$. Is this conclusion drawn appropriate? If not,why?
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No, this conclusion is not correct. The only thing Mr Pang can conclude is that
- 50% of employees earn 10000 or less and
- 50% of the employees earn more than 10000.
The second part does not imply (in any way) that the maximum salary is 20000 i.e. twice as big as the median. It might be 10050 or 100000. You can say nothing about it's value. You only know that half of the employees of the company earn above 10000 and half below 10000.
Jimmy R.
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