Possible Financial Ego Boost: ePodunk

[Ima saver]

Re: Possible Financial Ego Boost: ePodunk

I thought so too, but it is interesting!

[tinapbeana]

Re: Possible Financial Ego Boost: ePodunk

All of the numbers seemed a tad on the low side for even 2000 - both areas.

I thought the same thing, but then remembered that 'median' is not the same thing as average. Average income (or mean) is if they added up everyone's salary and then divided it by the population. Median is the number that falls squarely in between the highest and the lowest income value (I'm guess they take out anyone that is statistically aberrant, like professional sports players!).

In a town of 6 people where 5 make 20k and 1 makes 100k, the median income is 60k but the average is 33k.

Reverse it to a town of 6 where 5 make 100k and only 1 makes 20k. The median is still 60k, but the average is now 86k.

Sneaky, huh?

[vsjhoc]

Re: Possible Financial Ego Boost: ePodunk

"Growth trend: Washington is in one of the fastest growing counties in the state."

Hmmmmm, we don't have any counties here in DC, and we're not a state.

[disneysteve]

Re: Possible Financial Ego Boost: ePodunk

Median is the number that falls squarely in between the highest and the lowest income value (I'm guess they take out anyone that is statistically aberrant, like professional sports players!).

In a town of 6 people where 5 make 20k and 1 makes 100k, the median income is 60k but the average is 33k.

Reverse it to a town of 6 where 5 make 100k and only 1 makes 20k. The median is still 60k, but the average is now 86k.

This is incorrect. Median is the number that appears at the middle of a list of numbers..

So if there are 6 people earning 20, 20, 20, 20, 20 and 100, the median would be 20 because that is the middle number on the list.

In the second example, you've got 100, 100, 100, 100, 100 and 20, the median would be 100.

[tinapbeana]

Re: Possible Financial Ego Boost: ePodunk

This is incorrect. Median is the number that appears at the middle of a list of numbers..

So if there are 6 people earning 20, 20, 20, 20, 20 and 100, the median would be 20 because that is the middle number on the list.

In the second example, you've got 100, 100, 100, 100, 100 and 20, the median would be 100.

sorry about that, steve, you are of course correct.

wikipedia has great info on topics like this, but when i used them to refresh my memory the top half of the article matched what i thought was right and the bottom half includes an example showing the actual correct info.

"At most, half the population have values less than the median and at most half have values greater than the median. If both groups contain less than half the population, then some of the population is exactly equal to the median...
The difference between the median and mean is illustrated in a simple example. Suppose 19 paupers and one billionaire are in a room. Everyone removes all money from their pockets and puts it on a table. Each pauper puts $5 on the table; the billionaire puts $1 billion ... there. The total is then $1,000,000,095. If that money is divided equally among the 20 persons, each gets $50,000,004.75. That amount is the mean (or "average") amount of money that the 20 persons brought into the room. But the median amount is $5, since one may divide the group into two groups of 10 persons each, and say that everyone in the first group brought in no more than $5, and each person in the second group brought in no less than $5. In a sense, the median is the amount that the typical person brought in. By contrast, the mean (or "average") is not at all typical, since no one present—pauper or billionaire—brought in an amount approximating $50,000,004.75."

[jodi]

Re: Possible Financial Ego Boost: ePodunk

Neat site. I could spend a lot of time looking this one over

Median income: $35k We are well below this, but when DH gets finished school and gets a job (hopefully) in three months, we will be above again.
Median house price: $52k
We are in an area where housing is still affordable. Unfortunately, our town is rural and what I would refer to as "dying" - not many jobs, very little public transportation, not the greatest schools (although I do feel pretty darn safe here). Population of 1200. It suits me just fine though

[MonkeyMama]

Re: Possible Financial Ego Boost: ePodunk

Oh yeah - the median thing explains it.

HEy check out this site - Net Worth IQ

I joined a while and forgot, just got an e-mail today.

Not exactly scientific, it compares your stats (income, net worth etc.) to other people on this site. Even compares by occupation. Interesting. I am not sure how representative the site is to real world population, that is why I say it isn't very scientific. Well that and who knows how accurate it is - do people exxagerate???? But interesting nonetheless.

I like it because my net worth blows everyone out of the water in my income and age range. However, that's just a real estate thing. Overall I am pretty average without real estate. Shucks. IT also ranks by state.

If your net worth is growing it is fun to track too. If it isn't growing, may be depressing.

[Ima saver]

Re: Possible Financial Ego Boost: ePodunk

I tried to sign up for networthIQ but nothing happened.

[Ima saver]

Re: Possible Financial Ego Boost: ePodunk

I tried again, make sure your user name is all one word!