What is the difference between average and median package? Which option should I consider while taking admission in a MBA college?

Hi, Average package of a college means sum of the average of all the packages (domestic, not international) received by their students. If there are 3 students in a college who got salary package of 2 LPA, 3 LPA and 4 LPA then the avg. package of that college is (2+3+4)/3 = 3 LPA. Median package is all about at what range most of the students in the college secured placement. Suppose there are 14 students in a college such that 2 of them got 10 LPA, another two got 2 LPA and remaining 10 of them got 6-7 LPA. Then the median package of the college will come around 6.xx LPA i.e. if a person got admission in that college he can confirm that he will get a package of 6 LPA if he performs good in academics. This can be predicted only with Median package not average package. Whenever available you should consider Median package over Average package while taking admission. Why because there are two types of packages: Domestic (job will be in Indian location) and International package (job will be in any foreign location). While calculating average package colleges should use only Domestic not International because say the cost of living in India is low as compared to USA. You will get a water bottle in India for Rs. 20 and for the same is US it is Rs. 100. So, a package of 10 LPA in India equals to Rs. 20 LPA in US (approx.) and below 5-10% students in a college will secure international jobs. Now go back to average package concept, 10 students in a college where 2 got International package of 15 LPA and remaining 8 has got domestic package of 4 LPA then the colleges will say their highest package as 15 LPA and average package as 6.2 LPA. But, in reality the median package of that college is 4 LPA. So, check for median package of the college you wish to join, if you really care about your salary.

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