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The American family's net worth, on average, rose about 6 percent from 2001 to 2004. But the median net worth-the midpoint that separates the top 50 percent from the lower 50 percent-barely rose, and remained less than one-fourth as large as the average.

The American family's net worth, on average, rose about 6 percent from 2001 to 2004. But the median net worth-the midpoint that separates the top 50 percent from the lower 50 percent-barely rose, and remained less than one-fourth as large as the average.

Holt Mcdougal Larson Pre-algebra: Student Edition 2012
Holt Mcdougal Larson Pre-algebra: Student Edition 2012
1st Edition
ISBN:9780547587776
Author:HOLT MCDOUGAL
Publisher:HOLT MCDOUGAL
Chapter11: Data Analysis And Probability
Section11.5: Interpreting Data
Problem 9E
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Family Values The American family's net worth, on average, rose about 6 percent from 2001 to 2004. But the median net worth-the midpoint that separates the top 50 percent from the lower 50 percent-barely rose, and remained less than one-fourth as large as the average. $500,000 400,000 300.000 200.000 Net worth of an American family 100,000 2001 2004 2001 2004 MEDIAN AVERAGE Source: Federal Roserve The New York Times a) Why is the mean for each year so much larger than the corresponding median? b) Between 2001 and 2004, the median American family's net worth remained unchanged. However, the mean American family's net worth grew. What caused this to occur? c) Based on skewness, was the mean the correct measure of center to use for discussing the American family's net worth? Explain.
Transcribed Image Text:Family Values The American family's net worth, on average, rose about 6 percent from 2001 to 2004. But the median net worth-the midpoint that separates the top 50 percent from the lower 50 percent-barely rose, and remained less than one-fourth as large as the average. $500,000 400,000 300.000 200.000 Net worth of an American family 100,000 2001 2004 2001 2004 MEDIAN AVERAGE Source: Federal Roserve The New York Times a) Why is the mean for each year so much larger than the corresponding median? b) Between 2001 and 2004, the median American family's net worth remained unchanged. However, the mean American family's net worth grew. What caused this to occur? c) Based on skewness, was the mean the correct measure of center to use for discussing the American family's net worth? Explain.
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