The first step in analyzing the pay data is to generate the weighted means for each benchmark job. Weighted

means, as compared to simple means, are calculated to better represent the market data $($Burke$,2008).$ A simple

mean would be calculated by adding up the average base pay rates and dividing by the number of organizations,

but small and large companies would both be given the same weight if using a simple mean. A weighted mean

gives equal weight to each job incumbent$$s wage and, therefore, is more representative of the data. Below is an

example of how to calculate a weighted mean. This example uses sample data from surveys of two

companies. Note: the numbers used are NOT from the data in this case study.

Read more about salary surveys on page $262$ of your textbook:

Gerhart, B$.(2023).$ Compensation $(14$th ed$.).$ McGraw$-$Hill

To calculate the weighted mean:

Simple mean $=$ average base and divide by number of companies

$(21,000+22,000)/2=21,500$

Weighted mean $=$ equal weight to each job incumbent$$s wage

$(1/3$ x $21,000)+(2/3$ x $22000)=21,666$

Read more about central tendencies on page $281$ of your textbook:

Gerhart, B$.(2023).$ Compensation $(14$th ed$.).$ McGraw$-$Hill