Research & Analysis for Business and Investment Clients |
Net Annual Income Probability Distribution Graph – United States
A great way to visually understand how incomes are distributed is to plot income probability vs. net household income. As you would expect there are many people with moderate income and a few people with very high incomes. To undertand the data a histogram is plotted in Figure 1. This graph shows what percentage of US households fall into a specific bin. For example, just over 6% of American households earn between $90k-$110k.