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If the annual income of residents in a country is 42000 thousand dollars with a standard deviation of 10000 dollars. Between what two values do 95 percent of the incomes of country residents lie?
Wiki User
∙ 8y ago
Following on from what Anand Mehta said, if this was given as a class problem at a basic level, and the assumption was made that the incomes were normally distributed, 95% is equivalent to 1.96 SD.
1.96 * 10,000 = $19,600
So the range is given by $42,000 - $19,600 = $22400
and $4200 +$19600 = $61,600
ie $22,400-$61,600.
If you were rounding, 95% is often considered as 2SD so then the range would be $22,000-$62,000.
Wiki User
∙ 8y ago
Wiki User
∙ 8y agoThe distribution of incomes is not normally distributed: in fact it is skewed with a long tail comprising a few people with very high incomes. This is true for all countries and over time. It is therefore not appropriate to assume normal distribution, or even symmetry. Consequently, it is not possible to answer the question without more information.
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