Who cares about the average income!

Posted on March 17, 2010 by Tara Thiagarajan in Blog, Writing. Comments Off on Who cares about the average income!

Many of us think of statistics as basically taking the average of some numbers. Maybe we even think of the normal distribution or ‘the bell curve’ and the concept of standard deviation. In this context, if you say the average height of people in India is around 5’ 5” with a standard deviation of 5”, it’s pretty intuitive what that means – that when you arrive in India you will find most people around 5’5” with some variation this way and that way of mostly 5”. In large part we all look similar and can fit in the same seats, sleep on the same size beds and fit through the same doorways. Instead, imagine if the distribution was not a bell curve but rather looked like this. A decreasing function with a heavy tail.

What this would mean is that most … Read More »