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Mean Disposable Income

Mean disposable income, also known as the average disposable income, is calculated by adding up the total disposable income of all individuals in a group and dividing the result by the number of individuals in the group. It is a measure of the central tendency of the income distribution, and it is sensitive to extreme values (outliers).

For example, consider a group of 5 people with the following disposable incomes: $20,000, $30,000, $40,000, $50,000, $100,000. The mean disposable income for this group would be calculated as follows:

Mean disposable income = ($20,000 + $30,000 + $40,000 + $50,000 + $100,000) / 5 = $50,000