Question

question 32 points 3

according to the statistical abstract of the united states, the mean net worth of all households in the united states in 2004 was \\$448,200, while the median net worth was \\$93,100. which measure do you believe better describes the typical u.s. households net worth?

mean
median

Explanation:

Analyze the given data

Using the Income Distribution Skewness knowledge point
The mean net worth is \(\$448,200\) and the median is \(\$93,100\). Since the mean is significantly larger than the median, the distribution of household net worth is strongly skewed to the right.

Evaluate measures of center

Using the Measures of Center knowledge point
The mean is highly sensitive to extreme values (outliers), such as ultra-wealthy households, which pull the mean upward. The median represents the middle value, where \(50\%\) of households fall below and \(50\%\) fall above, making it resistant to extreme outliers. Therefore, the median is a better measure to describe the typical household's net worth.

Answer:

• Mean
• Median (Correct answer)