In this assignment, you will study the usefulness of z-scores.
Z-scores frighten many people at first, but once you understand them, you will find them useful and easy to calculate. They are useful in many situations.
Using the Internet, research z-scores, their usefulness, and how they are calculated.
Consider the following scenario.
Samantha Reed has been working at Company X for ten years as the human resources manager. She went to school with Mark Hall, who has had the same position at Company Y for the same amount of time. The companies are of a similar size and are located in different cities, but the cities have a similar cost of living. Reed and Hall got together at a class reunion, and Reed said she made $65,000 and was satisfied with that salary. Hall said he also made $65,000 but complained and felt underpaid. The mean manager salary at Company X is $70,000 with a standard deviation of $5,000. At Company Y, the mean manager salary is $72,000 and the standard deviation is $1000.
Based on your research and the given scenario, complete the following tasks in a 2- to 3-page Microsoft Word document:
- Calculate z-scores for the employees mentioned in the two companies.
- Answer the following questions:
- What would Hall be earning if he made a comparable amount (that is, he had the same z-score) as Reed? Make sure you show each step of your calculations.
- Why do we use z-scores to make these types of determinations?
- Support your responses with examples.
- Cite all sources in APA format.
- Attach a Turnitin.com Report.