The Basic Practice of Statistics 7th Edition

Published by W. H. Freeman
ISBN 10: 1-46414-253-X
ISBN 13: 978-1-46414-253-6

Chapter 2 - Describing Distributions with Numbers - Chapter 2 Exercises - Page 67: 2.26

Answer

The main explanation for the differences is that a married couple would have more money to put into an IRA. A median of 0 for single households states that at least half of single households do not have any retirement assets inside IRAs (and defined contribution accounts). Thus, fewer than 50% of single households have any retirement assets.

Work Step by Step

If a dataset has a median of 0, then at least 50% of the data set must be 0. (By the definition of median, this is possible.) Thus, at most 50% of the data set would have retirement assets.
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