Q:
How do you calculate a median income?
A:
Quick Answer
Median income is calculated by identifying the middle value in a set of incomes as long as the set of incomes is in ascending order, according to Concept Stew. With an even number, the median is calculated by averaging the two numbers in the middle of the set.
Continue Reading
Credit:
Gary Houlder
Taxi
Getty Images
Full Answer
Median income is a better indicator of central tendency than the mean if the distribution of data is skewed, notes Concept Stew. A skewed distribution of data occurs if there are a disproportionate number of values at the high end or the low end of the distribution; these values are misleading when the mean is calculated.
Learn more about Financial CalculationsSources:
Related Questions
-
Q:
How does one use a cost of living calculator?
A: Cost of living calculators ask for information about a person's income and present location, and then calculates the necessary income needed to maintain th... Full Answer >Filed Under: -
Q:
Is a gross income an income before or after taxes?
A: Gross income is the income of an individual or business before payroll taxes are deducted. A typical employer deducts an employee's federal, state and loca... Full Answer >Filed Under: -
Q:
How do you prepare an income statement?
A: To prepare an income statement, first gather together sales and cost of goods sold data to determine business profits, and then gather the operating expens... Full Answer >Filed Under: -
Q:
How do you calculate per capita income?
A: The U.S. Census Bureau calculates per capita income by dividing a geographic area's total income from the past 12 months by the total population of all age... Full Answer >Filed Under:
