In a town of 50 people one person earns 5,000,000 a year and the other 49 each earn 30,000. What is the mean income?

1. The 49 ordinary earners contribute 49 times 30,000, which is 1,470,000. 2. Adding the single large income gives 1,470,000 plus 5,000,000, which is 6,470,000. 3. Dividing 6,470,000 by 50 people gives a mean of 129,400 a year. 4. The figure 30,000 is the median rather than the mean, because it ignores the one very large income. 5. A mean of 100,000 would need the large income to be about 3,500,000 instead. 6. A mean of 154,900 comes from dividing by 49 people instead of by all 50. _Source: OpenStax Introductory Business Statistics (CC BY 4.0), Ch 2 "Descriptive Statistics", section 2.3 Measures of the Center of the Data_