You read that the median income of U.S. households in 2017 was $68,145.

Select the correct explanation for the term "median income."

A. More U.S. households in 2017 made $68,145 than any other household income.
B. About half of U.S. households in 2017 had incomes higher than $68,145, and about half had incomes less than $68,145.
C. The total amount of household income produced in the U.S. in 2017 was $68,145 times the number of households.
D. The total amount of household income produced in the U.S. in 2017 divided by the number of households is $68,145.

The correct explanation for the term "the median income" is: About half of U.S. households in 2017 had incomes higher than $68,145 and about half had incomes less than $68,145. Option 2.

The term "median income" signifies the income level dividing a dataset, in this case, U.S. household incomes in 2017, into two equal halves. To determine the median income, all household incomes are arranged in ascending order, and the middle value is identified.

For U.S. households in 2017, this median income was $68,145. This means that precisely half of the households earned more than $68,145 that year, while the other half earned less. It provides a clear indication of the income distribution, showcasing the typical income level within the population.

Unlike the mean income, which can be skewed by extreme values, the median offers a more robust representation of the central tendency of incomes. Consequently, it serves as a valuable metric for assessing economic disparities and overall financial well-being within a population.