There are eight households in a rural community. Four of the households earn $30,000 each per year, and the other four households earn $40,000 each per year. Suppose that a new resident, with an income of $2 million per year, builds a mansion in the community. After the new resident moves in, the median household income has _____, and the mean household income has _____.

Question

Quizplus · Accepted Answer

The median income remains the same because it is the middle value, which is still between $30,000 and $40,000 even after the new resident moves in. However, the mean income increases significantly due to the addition of the $2 million income.

There Are Eight Households in a Rural Community