The household income by State in 2020 shows the average prices, average gas consumption and average scores. It is used to represent the total earnings by a specific household through their standards of living. From the individual income it becomes easier to measure and make comparison concerning it and the median income levels being earned. Median income focuses on the exact figure earned by an individual while doing a job opportunity. The median gives a measure of the distribution of the dataset found at the centre position from the lowest towards the highest values (PK, 2020). As for the individual income it caters for all the income means found in the job position. The key difference is found in the aspect where for mean it entails the average of numbers while median is considered the middle value in a given list of numbers and other outlier values.
The median household income for a business model creates a more focused summary while measuring the overall income level. It relays an accurate measure when a summary of income is needed while at a certain geographic level as compared to that of average household income. Issues on outlier household conditions hence do not affect the flow of income either in high or low seasons (PK, 2020). The average household income for California was about $111,632.93 while the median household income for it was $78,002.00. For the state the average income was quite larger than the median income hence proved a larger threshold for the region.
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In most conditions under the basic features of statistics in a skewed distribution it proves that the average is found at a region closer to the tail for the distribution. As for a right skewed distribution where the tail points directly to the number line the average value is always higher than the median value.
Response
Average income it is linked to per capita income since it regards the measure of an average income that is earned by every individual in a given area code in a given timeframe. The whole value is calculated by dividing the entire income with the overall population of the designated location. For the median income it occurs when the income values divide a given population into two distinct groups where one has an income above the available amount while the other has a figure below the stated amount. It therefore proves that there is a major difference between the average and median incomes in the global society. An example is the state of Texas in 2019 where the average household income ranged at about 32,000 for the per capita and the median income was 67,000. The whole aspect led to the increase by a value of 6.8% from the previous year in 2018 which had a median value of about 60,000 and the average income was around 59,000. In the current year 2021, the median income for Texas stands at about 61,000 while the average household based on per capita has exceeded 51,000. The whole aspect hence proves that it is not a matter of average income per capita values being high or low rather the median income values exhibiting the same patterns annually but it highly depends on the economy of the country.
References
PK. (2020). Average income by state plus median, top 1%, and all income percentiles in 2020. DQYDJ. https://dqydj.com/average-income-by-state-median-top-percentiles/
