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R63 • Lesson 93 of 105

Mean vs Median: When to Use Which

Choosing appropriate measures of center based on data distribution

Reserve & Extensions • K-12

Prerequisites: H47, E12

Key Concepts

  • mean
  • median
  • outliers
  • skewed data
  • data interpretation

Mean vs Median: When to Use Which

The mean and median are both measures of center, but they tell different stories about data. Choosing the wrong one can be misleading -- and in real life, this matters more than you might think.

The Mean: Adding and Dividing

The mean (arithmetic average) is the sum of all values divided by the count:

Mean = (x1 + x2 + ... + xn) / n

The mean uses every data point in its calculation. This is a strength when data is symmetric, but a weakness when extreme values (outliers) are present.

The Median: The Middle Value

The median is the middle value when data is arranged in order. For an even number of values, it is the average of the two middle values.

The median is resistant to outliers -- extreme values barely affect it.

Worked Example 1: Outlier Impact

Five friends earn these hourly wages: $12, $13, $14, $15, $16.

Mean: (12 + 13 + 14 + 15 + 16) / 5 = 70 / 5 = $14

Median: The middle value is $14.

Both agree. Now suppose one friend gets a raise to $50:

Data: $12, $13, $14, $15, $50.

Mean: (12 + 13 + 14 + 15 + 50) / 5 = 104 / 5 = $20.80

Median: The middle value is still $14.

The mean jumped by $6.80 because of one outlier. The median barely moved. If you want to describe what a "typical" friend earns, the median is more honest here.

Skewed Data: The Key Decision Factor

When data is skewed (pulled in one direction), the mean gets dragged toward the tail while the median stays near the bulk of the data.

Right-Skewed (Use Median)
  • Household incomes
  • Home prices
  • Company sizes
  • Medical costs
Symmetric (Mean is Fine)
  • Test scores (often)
  • Heights of adults
  • Measurement errors
  • Temperatures

Worked Example 2: Housing Prices

A neighborhood has these home prices (in thousands): $180, $195, $200, $210, $220, $230, $1,500.

Mean: (180 + 195 + 200 + 210 + 220 + 230 + 1500) / 7 = 2735 / 7 = $390,714

Median: Ordered middle value = $210,000

The mean suggests homes cost nearly $400K, but 6 out of 7 homes are under $230K. The one mansion skews the mean. News reports use median home price for exactly this reason.

Worked Example 3: When the Mean Is Better

A teacher wants to calculate final grades from five equally weighted tests. Scores: 78, 82, 85, 90, 80.

Here the mean is appropriate: (78 + 82 + 85 + 90 + 80) / 5 = 83. Every test should contribute equally to the final grade -- no score is an "outlier" to ignore.

Common Mistake

Saying "average income in the U.S. is $X" using the mean is misleading. Because a small number of very high earners pull the mean up, the median income is a much better representation of what a typical person earns. The mean U.S. income is significantly higher than the median.

Quick Decision Rule

Ask: "Could there be extreme values or is the data lopsided?" If yes, use the median. If the data is roughly symmetric with no wild outliers, the mean works well. When in doubt, report both.

Practice Problems

1. Find the mean and median: 3, 5, 7, 9, 11.

Solution

Mean = (3 + 5 + 7 + 9 + 11) / 5 = 35 / 5 = 7. Median = 7 (middle value). They are equal because the data is symmetric.

2. Find the mean and median: 3, 5, 7, 9, 100.

Solution

Mean = (3 + 5 + 7 + 9 + 100) / 5 = 124 / 5 = 24.8. Median = 7. The outlier (100) drags the mean far above the typical values.

3. A company reports its employees' "average salary" as $95,000. But most employees earn between $40,000 and $60,000, while the CEO earns $5,000,000. Which measure did the company likely use, and which would be more informative?

Solution

The company likely used the mean, which is inflated by the CEO's salary. The median would be more informative since it better represents what a typical employee earns.

4. A student scores 88, 91, 85, 90, 87 on five quizzes. Should the teacher use mean or median to compute the grade? Why?

Solution

Use the mean. The scores are close together with no outliers, and every quiz should count equally toward the grade. Mean = (88 + 91 + 85 + 90 + 87) / 5 = 441 / 5 = 88.2.

5. Data set A: 10, 20, 30, 40, 50. Data set B: 10, 20, 30, 40, 500. For each, state mean and median, and which measure of center you would report.

Solution

Set A: Mean = 30, Median = 30. Either works (symmetric data). Set B: Mean = 120, Median = 30. Report the median -- the value 500 is an outlier that makes the mean unrepresentative.

Summary

Overview