Family Incomes a Government Report on Standard of Living Says

question 20

Essay

Family Incomes A government report on standard of living says that family incomes nationwide are skewed to the right, with a mean of $33,400.
a. We collect income data from a random sample of 50 local families. Why is it okay to use these data for inference even though the population is skewed?
b. The standard deviation of the 50 incomes in our sample was $25,530. Specify the sampling model (shape, center, spread) for the mean income of such samples.
c. This sample of randomly chosen families produced a 90% confidence interval for the
local mean family income of (32,882, 44,761). Does this interval provide evidence that family incomes are unusually high here? Explain briefly.
d. Suppose we hope to improve our estimate by choosing a new sample. How many families must we survey to have 90% confidence of estimating the mean local family income to within $2000?

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Definitions:

Group Members

Individuals or entities that belong to a defined collection or category, often within a corporate or organizational structure.

Australian Residents

Individuals or entities residing in Australia for tax purposes, subject to Australian tax laws on their worldwide income.

Reverse Acquisitions

A transaction where a smaller company acquires control over a larger company, often resulting in the smaller entity's management taking control of the combined entity.

Reverse Acquisition

An acquisition where the acquiring company is considered the subsidiary and the target company is considered the parent in financial reporting.