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True or false: Soccer According to a story in the Guardian newspaper (football.guardian.co.uk), in the United Kingdom the mean wage for a Premiership player in 2006 was \(£ 676,000\). True or false: If the income distribution is skewed to the right, then the median salary was even larger than \(£ 676,000\).

Short Answer

Expert verified
False, in a right-skewed distribution, the median is less than the mean.

Step by step solution

01

Understanding Skewness

In a right-skewed distribution, the tail on the right side of the distribution is longer or fatter than the left side. This skewness typically suggests that there are some very high values that pull the mean to the right, or higher than the median.
02

Mean vs Median in Skewed Distributions

In any right (positively) skewed distribution, the mean is usually greater than the median. This occurs because extreme high values affect the mean more than the median.
03

Applying to the Soccer Player Wages

Given that the mean wage for a Premiership player is noted, and knowing the distribution is skewed to the right, the median wage is expected to be less than the mean wage.
04

Conclusion About Median in Skewed Distribution

Since the mean ($676,000) is greater in positively skewed distribution than the median, it is false that the median is even larger than £676,000.

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Key Concepts

These are the key concepts you need to understand to accurately answer the question.

Mean and Median
In statistics, the mean and median are two important measures of central tendency. The mean, also known as the average, is calculated by adding up all the values and then dividing by the count of those values. For instance, if five soccer players earn £600,000, £650,000, £700,000, £750,000, and £800,000, the mean would be calculated as follows: \[ \text{Mean} = \frac{£600,000 + £650,000 + £700,000 + £750,000 + £800,000}{5} = £700,000 \] The median, on the other hand, is the middle value in a list of numbers. To find the median, all numbers must be ordered from smallest to largest, and the middle number is the median. If there is an even number of observations, it is the average of the two middle numbers. Using the same salary amounts above, the median is £700,000, as it is the third value in the ordered list. A key difference is that the mean is influenced by extreme values (outliers), while the median gives a better indication of an average in a dataset with such outliers.
Skewed Distribution
A skewed distribution is one where the data is not symmetrically distributed around the mean. In other words, one tail of the distribution is longer or fatter than the other.
  • Symmetrical Distribution: Data is evenly distributed on both sides of the mean.
  • Left-Skewed (Negative Skew): The left tail is longer, so the mean is typically less than the median.
  • Right-Skewed (Positive Skew): The right tail is longer, making the mean greater than the median.
In a skewed distribution, the mean, median, and mode are not equal. Understanding the skewness of a distribution is crucial as it affects how data should be interpreted and analyzed. For example, measures like the mean could be misleading if there is significant skewness.
Right-Skewed Distribution
A right-skewed distribution, also referred to as positively skewed, has its longer tail on the right side. This occurs when a distribution has a few exceptionally high values compared to the rest, pulling the mean higher than it would otherwise be. In practice, if you were to plot a graph representing the salaries of Premiership players and found a right-skewed distribution:
  • The mean salary could appear higher than most players' actual salaries because a limited number of players earn extremely high wages.
  • The median salary is usually more representative of what the majority of players earn.
The earlier example of soccer player wages exemplifies why the statement "The median salary is larger than £676,000 in a right-skewed distribution" is false. In such a distribution, the mean is generally greater due to the influence of the higher earning outliers.

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Most popular questions from this chapter

Using MAD to measure variability The standard deviation is the most popular measure of variability from the mean. It uses squared deviations, since the ordinary deviations sum to zero. An alternative measure is the mean absolute deviation, \(\sum|x-\bar{x}| / n\). a. Explain why greater variability tends to result in larger values of this measure. b. Would the MAD be more, or less, resistant than the standard deviation? Explain.

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