Average and variance of salary/month The story started with variance, I should have told you also another important concept --- average. If you heard a company A's average salary for a month is 25,500 Euro, you might interested in to join the company. But, this company has only two people, a president and an employee. The president gets 50,000 Euro/month, and the employee gets 1,000 Euro/month. Now you see how average can deceive you. A company B is also two people company, but the president gets 30,000 Euro/month and the employee gets 21,000 Euro/month. CompanyA salary of president 50,000 Euro/month salary of employee 1,000 Euro/month Average of salary 25,500 Euro/month CompanyB salary of president 30,000 Euro/month salary of employee 21,000 Euro/month Average of salary 25,500 Euro/month The averages are the same! If I can choose one of them as an employee, I will choose B. But, if they can provide only average, I can not see the difference. That's bad!