I have been given a dataset and been tasked with calculating the average wage for different job titles. The data includes a mix of ranges (min-max) and values.
If we assume for the job title, Developer, these are the wages:
1. $80K - 120K 2. $90K 3. $120K - 150K 4. $95K 5. $50K 6. $200K - 225K 7. $100K 8. $100 – 150K 9. $50K - 120K 10. $85K
How should I calculate the average wage for a Developer?
My thoughts are to first excluded wage information for 5, 6 and 9 as these look like outliers. I would then take the average of each range and add these together with the other wages, and then divide by the number of wages.
This would give:
(100 + 90 + 135 + 95 + 100 + 125 + 85)/7 = $104K
I would then conclude that the average wage for a Developer at Company is 104K, with the range 80K to 150K.
Is this approach correct?
80K-120K means that there's one person whose income is somewhere in that range.