Question

There are six households in a rural community. each household earns $40,000 per year. suppose that a new resident builds a mansion in the community and that the income in the new household is $4 million per year. after the new resident arrives, the median household income has ________ and the mean household income has ________.

Answer 1

Answer: The correct answer that the mean has increased, but the median stayed the same.

Explanation: The mean number is the average.  Prior to the new neighbor, each household's income was $40,000.  When a household income of $4 million is added, the mean is going to increase.

The median is the number in the middle when all of the numbers are lined up in order.  By adding the $4 million to the mix, the number is the middle is still going to be $40,000.