why is the median net worth a more useful measure than the average net worth.
this is the answer i put:
Median net worth is a more useful measure than the average networth because its gives you the exact number quality total of each product we are graphing. But the average will provide us information of the total divided by the amount of the products and not the exact amount. When graphing, it is easier to compare when you have the exacts amount for each product than the average net worth.
((((if this is correct...please help me write this in better words, if wrong correct them please...thank u ^_^)))...*english is my second language, so im not much good wtih word..thnx again!!!)
The median net worth is a more useful measure than the average net worth because it provides a better representation of the typical individual's wealth in a population. To calculate the median net worth, you would organize the net worth of all individuals in ascending order and select the middle value.
On the other hand, the average net worth is obtained by adding up the net worth of all individuals and dividing it by the total number of individuals. While the average can provide a general idea of the overall wealth, it can be distorted by a few extremely high or low values. For example, if there are a few billionaires in a population with a lot of individuals who have low net worth, the average net worth may be inflated, giving a false impression of the typical individual's wealth.
In contrast, the median net worth is not affected by extreme values and gives a more accurate measure of the middle point of the population. It tells us the exact net worth of the person in the middle, which can be more useful for understanding the distribution of wealth and comparing different groups or populations.