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Solve the Problem I=3(xmedian)s\mathrm { I } = \underset { \mathrm { s } } { 3 ( \mathrm { x } - \mathrm { median } ) }

question 161

Essay

Solve the problem.
-Skewness can be measured by Pearson's index of skewness: I=3(xmedian)s\mathrm { I } = \underset { \mathrm { s } } { 3 ( \mathrm { x } - \mathrm { median } ) }
If I1.00\mathrm { I } \geq 1.00 or I1.00\mathrm { I } \leq - 1.00 , the data can be considered significantly skewed. Would you expect that incomes of all adults in the US would be skewed? In which direction? Why? Would you expect that for these incomes, Pearson's index of skewness would be greater than 1 , smaller than 1- 1 , or between 1- 1 and 1 ?

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Definitions:

Payroll Tax Expense

Taxes that employers are required to pay on behalf of their employees, such as social security and Medicare taxes.

Social Security Tax

A tax imposed on both employers and employees to fund the Social Security program, which provides retirement, disability, and survivorship benefits.

Medicare Tax

A federal tax that funds the Medicare program, deducted from the earnings of employees and matched by employers.

Unemployment Taxes

Taxes paid by employers to fund unemployment insurance programs, aiding workers who have lost their jobs.

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