Explain The Process Of America's Distribution Of Income In 1995?

Statistics show that in 1995 the median income of American families was $30,786, this means that half of all families received less than this figure while half received more. The number concerns the distribution of income, which shows the variability or dispersion of incomes. To understand the income distribution, consider the following experiment: Suppose one person from each household writes down the yearly income of his or her household on an index card. We can sort these cards into income classes.


Some of the cards will go into the lowest 20 percent, the group with under $14,400 of income. Some go into the next class. A few go into the top of 5 percent of households, those with incomes of $113,00 and above.


The actual income distribution of American households in 1995 shows the different income class fifths, or quantize plus the top 5 percent of households. It also shows the range of household incomes in each income class. It shows the percentage of the households in each income class, while the percentage of total national income that goes to the households in the income class.

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