7.1 Exercise 24

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, $\bar{X}$ = _____________
3. $\bar{X}$ ~ _____(_____,_____)
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?