Median: How to Calculate It, With Examples.

Median: How to Calculate It, With Examples.

What is the median in economics? In economics, the median is the value that separates the higher half of a data sample, a population, or a probability distribution, from the lower half. In simple terms, it may be thought of as the "middle" value. The median is of central importance in statistics and is used in many settings. For example, the median income is the level of income that is greater than half of the population and less than half the population. It is a commonly used measure of central tendency.

How median is calculated?

There are a few different ways to calculate the median, but the most common one is to simply take the middle value of a data set. For example, if you had the following data set:

1, 2, 3, 4, 5

The median would be 3, since it is the middle value. If there were an even number of values, the median would be the mean of the two middle values. For example, if you had the following data set:

1, 2, 3, 4, 5, 6

The median would be 3.5, since it is the mean of the two middle values (3 and 4).