Median household income
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The median household income is commonly used to provide data about geographic areas and divides housholds into two equal segments with the first half of households earning less than the median household income and the other half earning more. The median income is considered by many staticians to be a better indicator than the average household income as it is not dramatically affected by unusually high or low values."
"Median income is the amount which divides the income distribution into two equal groups, half having income above that amount, and half having income below that amount. Mean income (average) is the amount obtained by dividing the total aggregate income of a group by the number of units in that group. The means and medians for households and families are based on all households and families. Means and medians for people are based on people 15 years old and over with income."
-US Census Bureau, Frequently Asked Question, published by First Gov.
See also
- Household income in the United States
- Income quintiles
- Poverty in the United States
- Income distribution
- Median
References
Related Links
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