1. Although the mean and median are closely related, the difference between the mean and the median is sometimes of interest.

a. Suppose country A has five families. Their incomes are $10,000, $20,000, $30,000, $40,000, and $50,000. What is the median family income in A? What is the mean income?

b. Country B also has five families. Their incomes are $10,000, $20,000, $30,000, $40,000, and $150,000. What is the median family income in B? What is the mean income?

c. In which country is income inequality greater, A or B?

d. Suppose you thought income inequality in the United States had increased over time. Based on your answers to this question, would you expect the ratio of the mean income in the United States to the median income to have risen or fallen? Explain.