Chapter 1, Problem 8CRE

(a)

To determine

To find: the percentage of having tow householdpeople.

Answer to Problem 8CRE

About 20% of low income group household consists of 2 people and about 34% of high income household consists of 2 people.

Explanation of Solution

Given:

  

Calculation:

Use the given information to solve the given sub problems:

About 20% of low income group household consists of 2 people and about 34% of high income household consists of 2 people.

Conclusion:

Therefore, About 20% of low income group household consists of 2 people and about 34% of high income household consists of 2 people.

(b)

To determine

To find: the differences between the distributions.

Answer to Problem 8CRE

The distribution of low income household is strictly positively skewed and the distribution of the high income household is slightly positive skewed.

Explanation of Solution

Calculation:

The distribution of low income household is strictly positively skewed and the distribution of the high income household is slightly positive skewed. For a household with a single person it is

highly likely that it will fall in low income group with income less than $15000, the high income group consist of those household with income at least $10000 which will obviously have less number of person due to factors like education status.