Whats the answer for these problems Scenario: Baruch Graduates Part I You are in
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Whats the answer for these problems
Scenario: Baruch Graduates Part I You are interested in exploring the income distribution of certain Baruch College graduates who currently live in New York City. In particular, you are interested in the earnings alumni who majored in accounting and continue to work in the field. Using simple random sampling you collect annual income data for 50 such alumni who are working full-time. of Using R-you calculate the following: . > summary(Income) 1st Qu. Min. Median Mean 3rd Qu.Max. 25000 57250 76500106700 108800 415000 mean (Income 1] 106660 median(Income) 11 76500 var(Income) 1] 8955575918 sd (Income) 11946339 skewness(Income 1] 2.186956 - kurtosis(Income) 116.872416Explanation / Answer
1.
The distribution having a positive skew have the mean larger than the median.
So, the correct option is d.
Mean > Median, which is what you expect when skewness > 0
2.
Interquartle range, IQR = Q3 - Q1 = 108800 - 57250 = 51550
Any point not inside the range (Q1 - 1.5*IQR, Q3 + 1.5*IQR) are outliers.
(57250 - 1.5 * 51550, 108800 + 1.5 * 51550)
(-20075, 186125)
As, the max value is one of the outliers, correct option a.
Extreme positive values of income are more likely than extreme negative values of income.
3.
As skewness is greater than 0, the distribution of income is right skewed and hence have a long right tail
So, the correct option is c.
Income distribution has long right tail.
4.
If the kurtosis is greater than 3, then the dataset has heavier tails than a normal distribution (more in the tails).
As, the kurtosis of income is greater than 3, correct option is c.
Relative to normal distribution, income has "fatter tails".
5.
Correct option a.
Standard deviation is provided in the same units as income.
All other options are incorrect.
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