Money & WorkMental model

One billionaire in the room is enough to move the average.

The arithmetic mean adds everything and divides; a single outlier drags it far upward. The median is the middle value of the sorted list and barely moves. For incomes, the mean therefore almost always sits above the median.

Useful: When a statistic shows only the average, ask for the median – the gap reveals the skew.

Source: de.wikipedia.org

DenkfehlerEinkommenStatistik

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