Profits Jobs and productivity! How productive are American workers? One way to answer this question is to examine annual profits per employee. The results may change, however, from one industry group to another. This problem is based on information taken from Forbes Top Companies (edited by J. T. Davis, John Wiley Publisher).
(a) A random sample of seven automotive parts companies gave the following information about profits per employee (in thousands of dollars per employee):
14.1, 12.4, 7.7, 6.9, 9.0, 6.8, 6.8
Compute the range, mean, sample variance, sample standard deviation, and coefficient of variation.
(b) For a random sample of seven computer companies, the profits per employee in the same units were
29.0, 24.5, 31.0, 29.8, 21.8, 27.7, 19.1
Compute the range, mean, sample variance, sample standard deviation, and coefficient of variation.
(c) Examine your answers for parts (a) and (b). Although the standard deviation for part (a) is the smaller of the two, the mean for part (b) is the larger of the two. The CV for part (b) is almost half that of part (a) In this case, why would a small CV and high mean indicate more reliable productivity from the point of view of annual profits per employee? Explain.