Question

consider the following case of income data. most individuals earn between \\$20k and \\$40k per year but with a long right tail of households that earn much more.

find the nature of the distribution.

• right skewed
• symmetric

Explanation:

Identify the key characteristics of the data

Using the Income Distribution Skewness knowledge point

• Most individuals earn between \$20k and \$40k (the bulk of the data is concentrated at lower values).
• There is a long right tail of households that earn much more (extreme values extend to the right).

Determine the shape of the distribution

Using the Data Distribution Shape knowledge point

• A distribution with a long tail extending to the right is classified as right-skewed (or positively skewed).
• Therefore, the nature of the distribution is right-skewed.

Answer:

• right skewed (Correct answer)
• symmetric