A defunct website listed the “average” annual income for Florida as $35,031. What is the role of the term average in statistics? Should another term be used in place of average? Choose the correct answer below. A. The term average is not used in statistics. The term median should be used for the result obtained by adding all of the sample values and dividing by the total number of sample values. B. The term average is often used in statistics to represent the mean. C. The term average is not used in statistics. The term mean should be used for the result obtained by adding all of the sample values and dividing by the total number of sample values. D. The term average is often used in statistics to represent the median
The Correct Answer and Explanation is:
Correct Answer: B. The term average is often used in statistics to represent the mean.
In statistics, the term “average” is commonly used in everyday language to refer to the mean, which is calculated by adding all the values in a data set and dividing by the number of values. For example, if five people earn $30,000, $32,000, $35,000, $38,000, and $40,000 annually, the mean (or average) income would be the sum of those numbers divided by five, which equals $35,000. This aligns closely with how the term was used in the report you referenced.
However, “average” is not a precise statistical term on its own because it can refer to different measures of central tendency depending on the context. The three most common measures are mean, median, and mode. The mean is the arithmetic average, the median is the middle value when the data is ordered, and the mode is the most frequently occurring value.
In formal statistical communication, it is better to use precise terminology such as “mean,” “median,” or “mode” to avoid confusion. This is especially important because different measures can tell very different stories about a data set. For instance, income data is often skewed by a few individuals with extremely high earnings. In such cases, the median may give a more accurate picture of the typical income, as it is not affected by extreme values.
Despite this, the term “average” continues to be widely used in both media and informal discussion, and most people understand it to mean the mean unless otherwise specified. So while “average” is acceptable in casual usage, professionals prefer to be specific and use the term “mean” when that is what they are referring to.
