by Team InDeepData
2309
Do you ever think about how many percent of people own a larger portion of the wealth?
Let’s take an example of India,
According to Oxfam 2017 report,
The top 10% of the Indian population holds 77% of the total national wealth. 73% of the wealth generated in 2017 went to the richest 1%, while 67 million Indians who comprise the poorest half of the population saw only a 1% increase in their wealth.
So as you can see, there is an unequal distribution of wealth in India. It is also much the same in other parts of the world. We often think that if wealth is equally divided then how good it will be.
Suppose today is your lucky day, your wish is granted and all the people have decided to distribute wealth equally among themself.
Here the question arises.
- How will you distribute wealth equally?
- How the government calculates the average salary for a country?
- Which salary range has the maximum number of people?
Here maths comes to solve your problem, we all have heard the three most popular words of maths MEAN, MEDIAN, and MODE. Now we have to find out when and where these are going to help us.
Let’s understand it with the help of an example.
country X has 10 people and we have their wealth data as given below.
Now we come to our first question.
How will you distribute wealth equally?
First, we have to calculate what is the total wealth. So for that, we will sum up the wealth.
Total wealth = 7 + 3 + 20 + 12 + 1 + 9 + 5 + 17 + 22 + 8
= 104 Million
Now we calculate how much any individual will get = Total Wealth / Total no. of people
= 104 / 10
= 10.4 Million
If we distribute wealth equally among all the people then each one will get 10.4 million. What we calculate above, In a maths language that is called MEAN.
MEAN
MEAN: Mean is the sum of all the items divided by the total number of items. It is also called Average.
It’s time for the second question.
How the government calculates the average salary for a country?
First, we will short(arrange all salaries in increasing or decreasing order) the data.
Now we will find out the middle point in the data. But items are even so we will take the middle two items. Here person J and F. Whose wealth are 8 and 9 million respectively.
We will take the mean of J and F wealth the find out the middle value.
= 8+9 / 2
= 8.5 Million
The middle value is 8.5 Million. This is the answer to our second question. This whole process is also called MEDIAN.
MEDIAN
MEDIAN: The number in the middle in sorted data is called MEDIAN. If data has even items then the Median will be the mean of those two middle values.
If data has an odd no. of items.
If data has even no. of items.
It’s time for our last question.
Which salary range has the maximum number of people?
First, we will decide the range and count the people in that range.
Most of the people have salaries in the range of 5 million to 10 million. It is called MODE in Maths.
MODE
MODE: Which item has the highest frequency is called MODE.
According to the number line, 2 is the mode.
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