




In statistics, the median is the middle of a distribution in the sense that half the values are below and half are above the median. The median is an important statistical measure in many business contexts. For example, the median household income in the US is the level of income at which half of the household earned more, and the other half earned less. Detailed statistics sometimes report both the median and the (arithmetic) mean. The comparison between the median and mean suggests the distribution's shape. Where the mean and median are equal, the distribution will tend to be symmetrical. If the distribution has a long right tale, the mean tends to be higher than the median. In residential real estate, home price statistics in particularly expensive areas are more likely to report both the median and mean prices for a given period. In those areas, the highest priced properties usually increase the mean more than the median. In Manhattan, the mean apartment price is typically higher than the median price by a few hundred thousand dollars.
Rate this median definition...




Where is the market headed? The answer may surprise you. Find out with the exclusive & Barron's recommended charts of Chart of the Day. 

Popular Terms: 1035 exchange, phantom income, command economy, diluted share, LIBOR, per diem, exdividend date, debt service coverage, cancelled check, Zero Cost Collar, dividends payable, implied volatility, 1031 exchange, labor relations, 144a, covered put, irrevocable trust, class C shares, quality assurance, liquidity ratio, annual return, deferred tax, margin rate, reverse mortgage, deferred revenue, inflation, stock market close, limit order, retained earnings, VIX, current ratio, FTSE, Key Rate Duration, balance sheet, APR, required rate of return, stock split, FICO score, 401a, minority interest, open position, real GDP, option premium, whollyowned subsidiary, risk management, exdividend, in escrow, average price per share, EBITDA


 