The image shows a list of hourly wages for seven employees as follows:

$18, 16, 20, 12, 14, 12, 10$

Step-by-step calculation:

1. Find the mean (average) of the wages. $\text{Mean} = \frac{18 + 16 + 20 + 12 + 14 + 12 + 10}{7} = \frac{102}{7} \approx 14.57$

2. Calculate the deviation for each employee by subtracting the mean from their wage.

Deviation calculation:

$\text{Deviation} = \text{Employee wage} - \text{Mean}$

• Employee 1: $18 - 14.57 = 3.43$
• Employee 2: $16 - 14.57 = 1.43$
• Employee 3: $20 - 14.57 = 5.43$
• Employee 4: $12 - 14.57 = -2.57$
• Employee 5: $14 - 14.57 = -0.57$
• Employee 6: $12 - 14.57 = -2.57$
• Employee 7: $10 - 14.57 = -4.57$

What do the deviations indicate?

The deviations indicate how far each employee's wage is from the average wage. Positive deviations mean the employee earns more than the average, while negative deviations mean they earn less.

Do you want further details or have any questions?
Here are some follow-up questions for you to consider:

1. What is the importance of calculating deviations in wage analysis?
2. How would you interpret large positive or negative deviations in this context?
3. What is the sum of the deviations for all employees, and what does this tell us?
4. How would you use this information to assess wage fairness in the company?
5. How can standard deviation provide more insight into wage distribution?

Tip: When deviations sum up to zero, it confirms that the mean was correctly calculated.