Problem # 9: Family income 2011 According to Statistics Canada, Income Statistics Division, the mean after-tax...

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Problem # 9: Family income 2011 According to Statistics Canada,Income Statistics Division, the mean after-tax family income in2011 was $63000, while the median was $50700. In contrast to 2011dollars, the mean and median in 1980 were $50000 and $49500respectively. 1. Why did you expect to find a higher mean thanmedian in both years? Draw a very rough plot of what the histogramfor 2011 incomes might look like. 2. How much higher was the meancompared with the median in 2011, in percentage terms? How muchhigher in 1980? What does this suggest about how the incomedistribution has changed in Canada? Draw two very rough histogramsto represent what the two distributions might look like incomparison to each other. Are the rich getting richer, and the poorpoorer? Explain your answer. 3. Suppose that in 2030, the mean andmedian in actual 2030 dollars are $80000 and $60000 respectively.Have the rich gotten richer, and the poor poorer? Say what you canabout what appears to be going on with incomes, based on thislimited information.

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3.9 Ratings (433 Votes)

1The Salary histogram is expected to have a longer tail on theright side which will pull the mean salary higher than Medianvalue We expect the See Answer

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