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Chapter 12: Problem 86

Give an example of a phenomenon that is not normally distributed and explain why.

Short Answer

Expert verified
The wealth distribution of a country is an example of a non-normally distributed phenomenon. This is because wealth is often highly concentrated, resulting in a positively skewed distribution, which does not fit the 'bell curve' of a normal distribution. Extreme wealth values can lead to a high level of kurtosis - more frequent extreme values than expected in a normal distribution.

Step by step solution

01

Identify a Non-Normally Distributed Phenomenon

The wealth distribution of a country is an example of a phenomenon that is not normally distributed. In many countries, wealth distribution is skewed, often in favor of a small percentage of the population who hold a disproportionately large amount of the wealth.
02

Identify Characteristics of Non-Normal Distribution

In an ideal normal or Gaussian distribution, events are equally likely to occur on either side of the average, resulting in a symmetric, bell-shaped curve. However, in the distribution of wealth in many countries, there is a high level of skewness, with wealth concentrated among a small percentage of the population. This creates a positively skewed distribution. In addition, due to extreme values, the data may exhibit high kurtosis, meaning there are fat tails and thus, more frequent extreme values than expected in a normal distribution.
03

Validate Your Selection

This distribution is a common characteristic of wealth distribution globally, characterized by high amounts of wealth held by a small proportion of the population. Therefore, the wealth distribution of a country is an excellent example of a non-normally distributed phenomenon.

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