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Five households have monthly incomes of ₹10,000, ₹12,000, ₹14,000, ₹16,000 and ₹98,000. Which statement best explains why median income may describe a typical household better than mean income in this group?

Answer and explanation

Correct answer: The median is ₹14,000, while the unusually high income raises the mean to ₹30,000

The middle value of the five ordered incomes is ₹14,000, so that is the median. Their total income is ₹150,000, giving a mean of ₹30,000. The single unusually high income pulls the mean upward.

Related tags

Income DistributionMedian IncomeMean IncomeSocial Statistics

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