Suppose That Jennifer Earns $10,000 in Year 1 and $40,000

question 20

Multiple Choice

Suppose that Jennifer earns $10,000 in year 1 and $40,000 in year 2,while Shawna earns $40,000 in year 1 and only $10,000 in year 2.Is there income inequality for the two individuals?

• A) The yearly data and the data over the two years indicate equality.
• B) The yearly data and the data over the two years indicate inequality.
• C) The yearly data indicate equality,but the data over the two years indicate inequality.
• D) The yearly data indicate inequality,but the data over the two years indicate equality.

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Definitions:

Mean Income

The average income calculated by dividing the total income of a group by the number of individuals or households in that group.

Statistic

A numerical measure that describes some characteristic of a sample, such as its mean or variance, used for making inferences about a population.

Interquartile Range

A measure of statistical variability, representing the difference between the 75th (upper quartile) and 25th (lower quartile) percentiles.

Variance

A gauge for the extent of dispersion in a collection of data, derived by the average of squared differences relative to the mean.