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The median is a simple descriptive statistic that represents the midway value of an ordered set of numbers, dividing the set into bigger and lesser halves. The median value of a continuous probability distribution is the point at which a number is equally likely to be above or below it.
To find the median of a group of numbers:
To further understand how to apply the median formula, let’s use the methods outlined above in the following practical example.
An organisation has five senior management workers, as shown in the illustration. Employees are paid $5,000, $6,000, $4,000, $8,000, and $7,500 each month. The median wage is calculated using the median formula.
Solution: To determine the median salary, we will follow the processes outlined.
Step 1: Sort the data in the following order: $4,000, $5,000, $6,000, $7,500, and $8,000.
Step 2: There are a total of 5 observations in this step.
Step 3: The amount of observations you’ve been given is odd.
Step 4: For odd observations, use the median formula: Median = [(n + 1)/2]th term.
The median is equal to the [(5+1)/2]th term. 6/3 equals the third term. The cost of the third term is $6,000.
The average yearly wage is $6,000.
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