A government economic survey found that from 2010 to 2013 overall average family

Question

A government economic survey found that from 2010 to 2013 overall average family income rose 4%, but median family income fell 5%. How is that possible?

Choose the correct answer below.

A.

Families with low incomes saw a decrease, but incomes rose for a majority of families.

B.

Families with high incomes saw a decrease, but incomes rose for a majority of families.

C.

Families with high incomes saw an increase, but incomes fell for a majority of families.

D.

Families with low incomes saw an increase, but incomes fell for a majority of families.

Explanation / Answer

Mean might increase due to an increase in income of high income families, while median would decrease if majority of families have a fall in income.

Answer: Option C. Families with high incomes saw an increase, but incomes fell for a majority of families.

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