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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.

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.6: Summarizing Categorical Data
Problem 26PPS
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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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