Question

The four families on your block all have annual household incomes of $25,000. If a new family with an annual income of $75,000 moved in, which measure of central tendency would be most affected?

Answer 1

Answer: Mean

Explanation:

Given that,

Initially there are four families and each of the family having an annual household income of $25,000.

So, mean in this case is $25,000

If a new family with an annual income of $75,000 moved in, then

Mean = $\frac{25,000 + 25,000 +25,000 + 25,000 + 75,000}{5}$

          = $35,000

Therefore, mean changes from $25,000 to $35,000.

Both median and mode remains at $25,000 even with the addition of new family.

Hence, Mean would be mostly affected.