> Mean is...
> Mean is not...
> Median is...
> Mode is...
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Explanation of Neighborhood Example
Scenario 1: The "Upper Class" Neighborhood
So just how is it possible that one person can claim the average income in the neighborhood is $150,000 while another can claim it is only $35,000? Both are "honest" people who are using legitimate statistics, but they are using different definitions for "average." Lets look at the data in this neighborhood a little closer so that we can see just what is going on (hint: try changing the bin size on the histogram)...
The mean, median, and mode are so different because the income distribution is not symmetrical. The Garnett & Jackson households are quite wealthy. Therefor they greatly increase the mean income for the entire neighborhood (if they did not live here; the mean, median, and mode would be $34,375, $25,000, & $20,000 respectively). There are two lessons to be learned from this data:
Note: The applet used to create the above histogram can be obtained from the Globally Accessible Statistical Procedures (GASP) web site. It was created by R. Webster West, Dept. of Statistics, Univ. of South Carolina firstname.lastname@example.org
Copyright 2000, Wayne Pafko