Without meaning to attack you personally (especially in the context of the rest of your comment), a comment like this annoys me a bit.
I presume by "average" you mean arithmetic mean, but the median is also an average, and depending on the context the median might be a far more useful statistic than the mean. Confusing the mean and the median is one thing, and perhaps you actually used this terminology in the interview; "confusing" "the average" and the median isn't really worthy of comment, and sounds more like a breakdown in communication between interviewer and candidate rather than a lack of technical knowledge. It just seems vaguely hypocritical to me to be expecting a certain level of ability from the candidate and then using imprecise/informal terminology.