Solution:
From the graph,
Median = 50th percentile = $22,000 (approximately)
The mean is lower than $22000 because from the graph, there is a large number of people with income less than $22000, and fewer with income more than $22000. (From the wording of the question, calculation does not seem necessary)
Hence, the median is higher.
The mean is a better measure of central tendency, as it is a better representative of the gross annual income of the people. This is because more people have an income closer to the mean, rather than the median.
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