The mean is calculated by adding all the individual wages and then dividing by the number of persons.
The mean can be influenced by a few very large, or very small numbers.
If you employ 8 persons, and their salaries are:
$80,000.00
$72,000.00
$20,000.00
$20,000.00
$20,000.00
$20,000.00
$20,000.00
$20,000.00
To find the mean, add them together (you will get $272,000) and you divide by the number of employees (8), you will get a mean salary of ($272,000 ÷ 8) $34,000.00; quite a bit more than wnat most of the employees earn. Two of the employees earn more than the mean wage; six earn less.