7.1 Exercise 9

The distribution of income in some developing countries is considered wedge shaped (many low income people, very few middle income people, and even fewer high income people). Suppose we pick a country with a wedge shaped distribution. Let the average salary be $2,000 per year with a standard deviation of $8,000. We randomly survey 1,000 residents of that country.

1. In words, Χ = _____________
2. In words, $\overset{–}{X}$ = _____________
3. $\overset{–}{X}$ ~ _____(_____,_____)
4. How is it possible for the standard deviation to be greater than the average?
5. Why is it more likely that the average of the 1,000 residents will be from $2,000 to $2,100 than from $2,100 to $2,200?