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Chapter 2: Q 91. (page 144)

Making money (2.1) The parallel dot plots show the total family income of randomly chosen individuals from Indiana (38 individuals) and New Jersey (44 individuals). Means and standard deviations are given below the dot plots.

Consider individuals in each state with total family incomes of $95,000 Which individual has a higher income, relative to others in his or her state? Use percentiles and z-scores to support your answer.

Short Answer

Expert verified

In comparison to others in his or her state, an Indiana resident enjoys a better income.

Step by step solution

01

Given information

02

Concept

The formula used:z=x鈭�渭蟽

03

Calculation

For Indiana:

Calculate the z鈭�score:

z=x鈭�渭蟽=95,000鈭�47,40029,400=47,60029,400鈮�1.62

For New Jersey:

Calculate the z鈭�score:

z=x鈭�渭蟽=95,000鈭�58,10041,900=36,90041,900鈮�0.88

Compare the z鈭�scores:

When z scores are compared, it shows that a person with a higher z鈭�score has a greater income than others in his or her state.

As a result, an Indiana resident has a higher income than others in his or her state.

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