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Household incomes Refer to Exercise 10Here are summary statistics for the state median household incomes:

nMeanSDMinQ1MedQ3Max
5051742.448210.643664146071500095702071836

a. Find and interpret the z-score for North Carolina, with a median household income of $41,553

b. New Jersey had a standardized score of 1.82Find New Jersey’s median household income for that year.

Short Answer

Expert verified

Part (a) North California's median household income is 1.24standard deviations below the mean of all 50states' median household incomes.

Part (b) Median household income in New Jersey is approx. $66,685.80

Step by step solution

01

Part (a) Step 1: Given information

The table is

nMeanSDMinQ1
MedQ3
Max
5051742.448210.643664146071500095702071836

Value, x=41,553

Mean, x=51,742.44

Standard deviation, SD=8210.64

02

Part (a) Step 2: Concept

The formula used:z=(value-mean)(standarddeviation)

03

Part (a) Step 3: Calculation

The z-score is the number of standard deviations a value deviates from the mean.

The value above the mean is indicated by a positive z-score.

Whereas,

The value below the mean is indicated by a negative z-score.

Calculate the z- score:

z=x−xSD=41,553−51,742.448210.64=−10,189.448210.64≈−1.24

Therefore,

North California's median household income is 1.24 standard deviations lower than the mean of all 50 states' median household incomes.

04

Part (b) Step 1: Calculation

The z-score is the number of standard deviations a value deviates from the mean.

The value above the mean is indicated by a positive z-score.

Whereas,

A value below the mean is indicated by a negative z-score.

Calculate the z- score:z=x−xSD

Substitute the values:

1.82=x−51,742.448210.64

Multiply both sides by 8210.64:

14,943.36=x−51,742.44

Add 51,742.44 to both sides:

14,943.36+51,742.44=x−51,742.44+51,742.44

That becomes

x=66,685.80

Therefore,

For New Jersey, the median household income is approx. $66,685.80

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