Mean annual income

Nekkamath

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Nov 19, 2007
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In Cleveland, 80% of the families live west of the freeway and the other 20% live east of the freeway. The mean annual income of the families living west of the freeway is $45,000, and he mean annual income of the families living east of the freeway is $40,000. What is the mean annual income for all the families in Cleveland?

Where do I start? Obviously, you can just add the two dollar amounts and divide by two, right?
 
you use a weighted average ...

let P = the whole population

[0.8P(45000) + 0.2P(40000)]/P = 0.8(45000) + 0.2(40000) = 44000
 
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