Averages - Sorry, no mathematics section!!

[ll_billym]

The average annual salary in England is (roughly) �21000 and the average annual salary in Scotland is (roughly) �19000, a man on �20000 a year moves from his firms London branch to the Edinburgh branch.

When he does this the average salary in England rises slightly as he was below the average, the average salary in Scotland also increases as he is above the national average, the average salary in both countries goes up!!!

I understand this to be the case but cannot work out why as no new wealth has been created.... please explain.

[Space]

the total salary for a country is the average salary multiplied by the population.

The trick is: the population changes.

although both average salaries increase, the change of population is such that the total remains the same.

The richer country gets smaller, the poorer gets bigger.

[JudgeJ]

Excellent answer, space! And a perfect example of why averages, as a stand alone figure, are often not very meaningful.

When Paul McCartney moved to the Mull of Kintyre the average income for that area rocketed enormously. There would have been a similar reduction in the average income in the area he left. The crofters on the Mull did not become rich overnight. No new money was created and none was lost. It just moved. The average income for the Mull of Kintyre was meaningless.

[THECORBYLOON]

EDDIE, would the mode not be a better indicator?

[THECORBYLOON]

EDDIE If in a sample of 100, 45 earnt �10,00, 30 earnt �50,000 and 25 earnt �100,000, the Average is �44,500, the Mean is �50,000 and the Mode is �10,000 which is what most of the sample earn....