Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help (5 points) You are doing an internship with Canada Revenue Agency, and your boss has drawn a random sample of households directly from

Please help

image text in transcribed
(5 points) You are doing an internship with Canada Revenue Agency, and your boss has drawn a random sample of households directly from the Income Tax records. This is probably pretty close to a random sample, so you will treat it as if it's a random sample. Your boss wants you to estimate a measure of income inequality using the data. The data contains a variable that measures total household income. Income is only positive so this can't be a normally distributed variable. There is also a fat upper tail. However, if you take the natural log of family income7 it will look much more like a normal variable. You decide to treat the natural log of family income as if it is a normally distributed random variable. Call that variable M. To gauge inequality you decide to estimate "var (M) Your random sample of data has n : 91 observations. The sample mean is 12.435 and the sample variance is 17.345. Use this information to construct a 90% condence interval for var (M) Show your work. Use at least three decimal places in your work

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Changing Resource Problems Of The World

Authors: Ronald G Ridker

1st Edition

131735494X, 9781317354949

More Books

Students also viewed these Economics questions