Wednesday 19 December 2007

Another Statistical Blunder

"Average salaries approximately £31,000 in the Islands.Therefore there will be an awful lot of people earning more than that in the Island, including accountants" says Deputy John Le Fondre in the States of Jersey.

Please note that this is by no means close to the median wage, which is (on the basis of pretty well every other country in the world) likely to be considerably less. Jersey still refuses to go to the extra trouble of ensuring that it reports median salaries, and until it does so any use of "average salaries" is hopelessly misleading. Wages are skewed distributions, not normal onces, and in fact there will be all awful lot of people (more than 50%, probably up to 70% or higher) earning less not more than the average salary.

The States Statistics department always issue these figures without much explanation, and the JEP usually makes matters worse. A course in elementary statistics for all States members should be compulsory!

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