Chapter 1.3, Problem 83E

To determine

To find: the mean and the median

Answer to Problem 83E

Mean is $\$60,954$ and median is $\$48,097$

Explanation of Solution

Given:

Mean $48,097

Median $60,954.

Calculation:

Most people with a bachelor’s degree (but no higher) will have the same income, while some will have an income that is much higher.

Thus the distribution of salaries will be right-skewed.

In a right-skewed distribution, we know that the mean is greater than the median, because the mean is influenced by the very high salaries and the median is not:

  $\overline{X}=\$60,954$

  $MEDIAN=\$48,097$

Conclusion:

Therefore, mean is $\$60,954$ and median is $\$48,097$