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Sunday, December 14, 2014

The Median Is The Message

The Median is a statistics which separates the higher 50% of a population from the lower 50% of the population. It is a real number, in that it does actually occur in a data population, whereas an average need not actually occur.
For example, in the series 1, 2, 3, 4, 5.8  the median is 3 - right in the middle, and the average is 1+2+3+4+5.8 = 15.8   divided by 5 = 3.16,   and 3.16 is nowhere to be seen in the original data.

On December 12, 2014, The Pew Research Center released a report:
Wealth inequality has widened along racial, ethnic lines since end of Great Recession
By Rakesh Kochhar and Richard Fry
...Our analysis of Federal Reserve data does reveal a stark divide in the experiences of white, black and Hispanic households during the economic recovery. From 2010 to 2013, the median wealth of non-Hispanic white households increased from $138,600 to $141,900, or by 2.4%.

Meanwhile, the median wealth of non-Hispanic black households fell 33.7%, from $16,600 in 2010 to $11,000 in 2013. Among Hispanics, median wealth decreased by 14.3%, from $16,000 to $13,700. For all families — white, black and Hispanic — median wealth is still less than its pre-recession level...
 The 2013 figures are $141,900 for white households, $11,000 for black households, and $13,700 for hispanic households.

Fully 50% of white households are under the $141,900 figure, and fully 50% of black households are below the $11,000 figure, and fully 50% of hispanic households are below the $13,700 figure.


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