Median VS Average
How does median differ from average?
The average is calculated by adding up all of the individual values and dividing this total by the number of observations. The median is calculated by taking the “middle” value, the value for which half of the observations are larger and half are smaller.
Why would someone use the median instead of the average?
The advantage of the median is that it removes extreme measurements from a data set, giving you a more realistic idea of what to expect. The average can give you a more accurate sense of the total scope of data, but when it comes to planning for expenses, the median is a more reliable guide of expectations. The average can be skewed by an extremely large or small number throwing off the results.
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