There are six households in a rural community.Each household earns $40,000 per year.Suppose that a new resident builds a mansion in the community and that the income in the new household is $4 million per year.After the new resident arrives,the median household income has _____,and the mean household income has _____.

Question

Quizplus · Accepted Answer

The median household income remains the same because it is the middle value, which is unaffected by the extreme value of the new resident's income. However, the mean household income increases due to the addition of the new, much higher income.

There Are Six Households in a Rural Community