1. Summarize the income distribution graphically with a stemplot. Split stems as

ID: 3176653 • Letter: 1

Question

1. Summarize the income distribution graphically with a stemplot. Split stems as necessary to achieve a reasonable number of bins. From the graph, describe the shape of the income distribution and explain what it is about the data that makes it have that shape.

Explore the relationship between income and amount charged

2. Sketch the appropriate graph for exploring the relationship, correctly labelling it to show explanatory and response variables. From it, describe the relationship in terms of form, direction and strength. If the form is linear, justify your discussion of strength with an appropriate number.

Income(in thousands) 33 26 35 43 28 40 41 29 27 Amount Charged 2780 2300 3080 3690 2250 3334 3187 2491 2370

Explanation / Answer

Result:

Stem and Leaf plot for

Income(in thousands)

stem unit =

leaf unit =

Frequency

Stem

Leaf

6 7 8 9

0 1 3

Shape of the income distribution is bath tub shaped or U shaped. There are morepersons with lower income category and higher income category. Frequency of middle income category is small.