Suppose Mountania’s government now reports that its population mean disposable household income is $900 per month, with a standard deviation of $100. Deserita’s population mean is $1,000, with a standard deviation of $300.

a. Which country has more variation in income? Explain using popular phrases, such as “gap between rich and poor.”

b. Each country defines the poverty level to be $750. If you assume that income has a normal distribution, find the probability that a household’s income is below the poverty level in

i. Desertia

ii. Mountania

Does it seem reasonable to assume a normal distribution? Is income symmetric or skewed?