Data on the Amount of Money Made in a Year

question 42

Multiple Choice

Data on the amount of money made in a year by 1000 families in a small town were collected. You want to know how much each family will get if the money made by all the 1000 families is pooled together and then evenly redistributed back to them. Which of the following would you compute?

• A) arithmetic mean
• B) median
• C) interquartile range
• D) coefficient of correlation

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Definitions:

Standard Error

A statistical measure that estimates the accuracy with which a sample distribution represents a population by using standard deviation.

T-statistic

A type of statistic used in hypothesis testing to determine if there is a significant difference between two sets of data.

Alpha

Often referred to as the level of significance in hypothesis testing, representing the threshold for rejecting the null hypothesis.

Non-directional

A type of hypothesis that does not specify the direction of the expected difference or relationship.