Median earnings are a better benchmark for poverty than mean earnings because____________?
Correct answer: B. the mean is distorted by a few people at the very top of the distribution
- A. they lead more people to be defined as in poverty
- B. the mean is distorted by a few people at the very top of the distribution
- C. the median is a more accurate measurement of earnings than the mean
- D. all of the above
Explanation
A few very high earners can pull the mean upward, making it a poor representation of the typical household. The median is less affected by extreme values, so it provides a fairer poverty benchmark.
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