Concept explainers
(a)
Interpretation of z − score for North California.
(a)

Answer to Problem 14E
The
Explanation of Solution
Given information:
Value,
Mean,
Standard deviation,
Calculations:
The number of standard deviations that a value is from the mean represents the z − score.
Positive z − score indicates the value above the mean.
Whereas,
Negative z − score indicates the value below the mean.
Calculate the z − score:
Therefore,
For North California, the median household income is 1.24 standard deviation below the mean of all median household incomes of the 50 states.
(b)
Median household income of New Jersey.
(b)

Answer to Problem 14E
Median household income of New Jersey is approx. $66,685.80.
Explanation of Solution
Given information:
Mean,
Standard deviation,
Standardized score,
Calculations:
The number of standard deviations that a value is from the mean represents the z − score.
Positive z − score indicates the value above the mean.
Whereas,
Negative z − score indicates the value below the mean.
Calculate the z − score:
Substitute the values:
Multiply both sides by 8210.64:
Add 51,742.44 to both sides:
That becomes
Therefore,
For New Jersey, the median household income is approx. $66,685.80.
Chapter 2 Solutions
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