The Census Bureau website gives several choices for "average income" in its historical income data. In 2017, the median income of American households was $68,145. The mean household income was $93,453. The median income of families was $75,938, and the mean family income was $100,400. The Census Bureau says, "Households consist of all people who occupy a housing unit. The term 'family' refers to a group of two or more people related by birth, marriage, or adoption who reside together." Explain carefully why mean incomes are higher than median incomes and why family incomes are higher than household incomes.
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.
The Census Bureau website gives several choices for "average income" in its historical income data. In 2017, the median income of American households was $68,145. The
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