Q 3.8 . - Elementary Statistics

Question

Net worth: The board of Governors of the Federal Reserve system publishes information on family net worth in the survey of consumers fiances. In$2012$ the mean net worth of the families in the united state was  $\backslash (498.8$ thousand and the median net worth was  $\backslash )77.3$ thousand. Which measure of center do you think is more appropriate? Justify your answer.

Step-by-Step Solution

Answer

The median is more appropriate as a measure of center when compared to the mean. 

Step 1. Given information.

Net worth: The board of Governors of the Federal Reserve system publishes information on family net worth in the survey of consumers fiances. In $2012$ the mean net worth of the families in the united state was $\$498.8$ thousand and the median net worth was$\$77.3$ thousand.

Step 2. Which measure of center do you think is more appropriate? Justify your answer.

When compared to the mean, the median is a better measure of centre..