According to a Credit Suisse Survey, the mean net worth of all individuals in the United States in 2014 was $301,000, while the median net worth was $45,000. 1) Which measure of central tendency best describes the typical individual's net worth. Support your opinion using statistics. You need four statistical reasons to justify your answer. 2) What do you think causes the disparity in the two measures of central tendency? Provide two reasons wh
Inverse Normal Distribution
The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.
Mean, Median, Mode
It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.
Z-Scores
A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.
According to a Credit Suisse Survey, the
1) Which measure of
2) What do you think causes the disparity in the two measures of central tendency? Provide two reasons why?
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