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Matthews, Young and Associates, a management consulting firm, has four types of

ID: 3172260 • Letter: M

Question

Matthews, Young and Associates, a management consulting firm, has four types of professional on its staff: Managing consultants, senior associates, field staff, and office staff. Average rates charged to consulting clients for the work of each of these professional categories are $75/hour, $40/hour, $30/hour, and $15/hour. Office records indicate the following number of hours billed last year In each category: 8,000, 14,000, 24,000, and 35,000. If Matthews, Young is trying to come up with an average billing rate for estimating client charges for next year, what do you think is an appropriate rate? (prove statistically)

Explanation / Answer

From the given information the bills were

8000, 14000, 24000 and 35000

The average = (8000+14000+24000+35000)/4=20250