In the spring of 2010, almost all of the 50 U.S. states plus the District of Columbia were facing drastic financial crises, with many planning across-the-board budget cuts, layoffs, higher education fees, and other strategies to cut next year's expected budget gap. The image that follows shows the expected shortfall next year as a percentage of this year's budget for each of the 50 U.S. states and the District of Columbia.

a. Construct a relative frequency histogram to describe the percentages for the 48 states that are expecting to face shortfalls next year.
b. What is the shape of the histogram? Do you see any unusual features in the histogram? If there are any outliers, can you explain them?
c. There are three states, Alaska, Montana, and North Dakota, that are expecting a surplus next year. Can you think of a reason why this might be?

Transcribed Image Text:

Expected shortfall next Better WASH 13.9% year as a percentge of this year's budget MAINE 32.1% MONT Surplus Worse N D Surplus 264% 19,3% DAHO 13% VI,31.1% WIS. MMICH 25.3% 8.8% WYO. 90% NH 23,4% MASS 85% Woot NER OWA 566% UTAH RI. D.2% CONN, 20.2% 18,6% 9,7% KANS, 9.1% ILL INDomo 16.3% CALE 9.1% coo、 11.2% 99% 11.6% KY. N.J. 37.4% DEL 11.7% MD. 15.0% DC, 1.7% WY.A Mo. VA 3.5%82% RIN. M. N.C. TENN, 10,0% ARK Even 60% 124% 226% LA GA Miss. 82% 243% 12.8% ALASKA HAWAII Surplus 12.9% 凡A 22.2%