The annual salaries (in ‘000 US dollars) of a random sample of workers in a company are presented in the following table. Use the data to answer the questions that follow. (a) Find the following measures of central tendency: (i) Mean (ii) Median (iii) Mode (b) As far as this dataset is concerned, which of the three measures of central tendency you have computed is the least useful? Explain why. (c) Calculate the standard deviation
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.
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The annual salaries (in ‘000 US dollars) of a random sample of workers in a company are presented in the following table. Use the data to answer the questions that follow.
(a) Find the following measures of
(b) As far as this dataset is concerned, which of the three measures of central tendency you have computed is the least useful? Explain why.
(c) Calculate the standard deviation
(d) Construct a 93% confidence interval for the true population mean.
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