I was looking up the average networth of 30 year olds in the United States and it said: “The average net worth is $122,000 and the median net worth is $35,112” my brain is too smooth please help.
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There are different ways to determine an “average”.
Median is one of those ways, done by looking at the value right in the middle. So if looking at incomes, median income means half of people make more, half of people make less. Median works well in cases where outliers could skew result. Like if there were some billionaire grouped with average people.
Mean is when you add up all the values and divide by the number of things in the average. As stated above, this can be skewed if there are some outlier numbers.
Mode is just looking for the most common value. Like if somebody asked what people earn working at McDonald’s, the mode may be minimum wage because most workers only earn that.
So going back to your original stats… what it means is that a handful of super high net worth 30 year olds (tech start-up founders, pro athletes, trust fund kids) skew the mean all the way up to $122k, while half of 30 year olds have a net worth over $35k and half have net worth under $35k.
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