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Lesson 5 of 9 · about 18 minutes

The Statistics That Matter in Local Stories

You'll be able to

  • Choose mean or median and explain why
  • Write percentage point and percent changes correctly
  • Turn counts into rates per 1,000 or 100,000
  • Adjust dollar figures for inflation with the CPI-U
  • Spot base effects, small numbers and averages of averages

Most local data stories need about six statistical ideas. None of them requires more than division. Every one of them gets botched in print weekly, usually by someone who knew better and was in a hurry.

Mean or median

The mean is what most people call the average: add everything, divide by the count. The median is the middle value after sorting. They agree when data is balanced. They split apart when a few values are extreme.

Example: home sales in invented Larkspur

Nine sales last quarter: $185,000, $210,000, $224,000, $238,000, $251,000, $263,000, $279,000, $301,000 and $1,950,000 (a ranch house with acreage).

  • Mean: total $3,901,000 divided by 9 = $433,444
  • Median: the fifth of nine sorted values = $251,000
  • Mean without the ranch: $1,951,000 divided by 8 = $243,875

One sale moved the mean by almost $190,000. "The average Larkspur home sold for $433,000" is true and useless. Eight of nine buyers paid less than $302,000.

Use the median for incomes, home prices, rents, salaries and anything else with a long tail on one side. That is why the Census Bureau reports median household income. Use the mean when the total matters, such as average cost per mile when you will multiply back up to a budget. When in doubt, report the median and say so.

Percent versus percentage points

When something measured in percent changes, you can describe the change in percentage points or in percent, and those are different numbers.

MeasureBeforeAfterChange in percentage pointsPercent change
County unemployment rate3.0%4.5%up 1.5 pointsup 50%
Levy approval vote48%52%up 4 pointsup 8.3%
Graduation rate90%85%down 5 pointsdown 5.6%

"Unemployment rose 1.5 percent" is wrong, and the mistake is not small. It suggests a change of 0.045 points, from 3.0 to about 3.045. Write "rose 1.5 percentage points." If you want the relative change, write "the rate rose by half" and show both numbers.

Rates: per 1,000 and per 100,000

Bigger places have more of everything. Raw counts mostly measure population. To compare, divide by population and multiply by a round base.

Example: crashes in two invented counties

CountyCrashesPopulationRate per 100,000
Ridgemont412286,000412 / 286,000 x 100,000 = 144.1
Pell5831,50058 / 31,500 x 100,000 = 184.1

Ridgemont had seven times the crashes. Pell's residents were more likely to be in one.

Choose the base so the result is a readable number. Per 100,000 is standard for crime, deaths and disease. Per 1,000 suits school data: 37 suspensions among 1,460 students is 25.3 per 1,000; 12 suspensions among 310 students is 38.7 per 1,000. Use the same base and the same year of population for every place you compare.

And pick the right denominator. Crashes per resident ignores the interstate running through a county with few residents. Crashes per million vehicle miles traveled, which state transportation departments publish, may be fairer. Name the denominator in the copy.

Inflation: compare real dollars

A dollar in 2015 bought more than a dollar in 2024. Comparing budgets across years without adjusting is comparing in two currencies. The usual tool is the BLS Consumer Price Index for All Urban Consumers (CPI-U), U.S. city average. Its annual averages: 237.017 for 2015 and 313.689 for 2024. The BLS online inflation calculator uses this same series.

Example: did the road budget grow?

Invented Sutter County spent $4.2 million on roads in 2015 and $5.1 million in 2024. The commissioner says that is a 21 percent increase. Nominally, (5.1 minus 4.2) / 4.2 = 21.4 percent. True.

Now convert 2015 dollars to 2024 dollars: multiply by the ratio of the indexes.

  • 313.689 / 237.017 = 1.3235
  • $4.2 million x 1.3235 = $5.56 million in 2024 dollars
  • Real change: (5.10 minus 5.56) / 5.56 = minus 8.3 percent

In purchasing power, the road budget shrank by about 8 percent. Both numbers belong in the story, with the method. "After adjusting for inflation with the Consumer Price Index, the 2024 budget bought about 8 percent less than the 2015 one."

Construction costs have their own price indexes, and they do not always move with the CPI. If a county engineer says paving costs rose faster than general inflation, ask which index they used and check it.

Base effects and small numbers

Percent change on a small base produces dramatic, meaningless numbers. Robberies in a town of 1,800 went from 2 to 6. That is a 200 percent increase, and a jump from 111 to 333 per 100,000. It is also four robberies. One person could be responsible for all of them.

Federal health data builds the warning in. CDC WONDER marks death rates as unreliable when the count is under 20, and suppresses counts from 1 to 9. Borrow that habit:

  • Give the counts when they are small. "Six robberies, up from two."
  • Combine years. Three-year or five-year totals smooth out noise.
  • Check the base year. A change measured from 2020, when much of life shut down, can look like a boom that is only a return to normal.

The average of averages

Averaging averages gives every group the same weight regardless of size. It is wrong whenever the groups differ in size.

Example: a district's test scores

SchoolStudentsAverage scoreStudents x score
Central6006840,800
Hillside90887,920
Brook60915,460
Total75054,180
  • Average of the three averages: (68 + 88 + 91) / 3 = 82.3
  • Weighted average: 54,180 / 750 = 72.2

The district's real per-student average is 72.2. A press release saying the district averages 82 lets two small schools speak for the 600 students at Central.

The same trap hides in county averages of city per capita incomes, average tax rates across districts, and averages of percentages. In a spreadsheet, =SUMPRODUCT(B2:B4,C2:C4)/SUM(B2:B4) gives the weighted average in one step.

Common mix-ups

  • Claim: A 50 percent increase followed by a 50 percent decrease puts you back where you started. What the evidence shows: 100 up 50 percent is 150; 150 down 50 percent is 75.
  • Claim: The place with the most cases has the biggest problem. What the evidence shows: Compare rates. Big places lead in raw counts of almost everything.
  • Claim: Budgets that grow every year are growing in real terms. What the evidence shows: Only if they grow faster than inflation.

Reporting angle

  • When an official quotes "average" anything, ask whether it is a mean or a median, and ask for the underlying list.
  • When a release says a rate "jumped 40 percent," ask for the counts and the population behind it.
  • For multi-year budget comparisons, adjust for inflation yourself and note the index and years used.
  • For any per capita figure, ask which population estimate and which year the agency divided by.

Try it

  1. Enter the nine Larkspur home prices. Compute AVERAGE and MEDIAN, then delete the ranch and recompute both. Which one barely moved?
  2. Take any two local budget figures at least five years apart. Look up both years' CPI-U annual averages from BLS and convert the older figure to the newer year's dollars. Write one sentence with both the nominal and real change.
  3. Find a crash, crime or overdose count for your county and a much bigger one. Convert both to rates per 100,000 using the same population year.
  4. Rewrite this sentence correctly: "The poverty rate rose 2 percent, from 11 percent to 13 percent."

Check yourself

1. Unemployment rose from 3.0 percent to 4.5 percent. Which sentence is correct?

2. Ridgemont County had 412 crashes and 286,000 residents. Pell County had 58 crashes and 31,500 residents. Which has the higher rate per 100,000?

3. A road budget was $4.2 million in 2015 and $5.1 million in 2024. Using CPI-U annual averages of 237.017 (2015) and 313.689 (2024), what happened in real terms?

4. Robberies in a town of 1,800 went from 2 to 6. What is the best way to report it?

5. Three schools average 68 (600 students), 88 (90 students) and 91 (60 students). What is the district-wide average score per student?

6. Nine homes sold: eight between $185,000 and $301,000, and one at $1.95 million. Which figure describes a typical sale?

Terms in this lesson

Mean
The sum of the values divided by how many there are; the ordinary average.
Percentage point
The unit for the arithmetic difference between two percentages.
Rate per 100,000
A count divided by population, multiplied by 100,000, so places of different sizes can be compared.
CPI-U
The Consumer Price Index for All Urban Consumers, the BLS measure of price change most often used to adjust dollars for inflation.
Base effect
A large percent change that comes mostly from a small or unusual starting value.
Weighted average
An average where each value counts in proportion to its size, such as students per school.

Full glossary

Sources