Suppose a hypothetical economy consists of 20 nonunionized private sector workers who have the following annual earnings

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899604
Joined: Mon Aug 02, 2021 8:13 am

Suppose a hypothetical economy consists of 20 nonunionized private sector workers who have the following annual earnings

Post by answerhappygod »

Suppose a hypothetical economy consists of 20 nonunionized
private sector workers who have the following annual earnings:
$18,000, $9,000, $82,000, $12,000, $13,000, $76,000, $61,000,
$14,000, $22,000, $23,000, $21,000, $46,000, $59,000, $26,000,
$27,000, $37,000, $6,000, $41,000, $3,000, and $24,000.
a. Using annual earnings ranges of $10,000 (that is 0-$10,000,
$10,000-$20,000, and so forth), construct a histogram (absolute
frequency distribution) of this economy's distribution of personal
earnings. What is the mode of the histogram? What is
the average (mean) level of earnings? What is the median
level of earnings? Characterize the distribution as being
normal, skewed leftward, or skewed rightward. Explain.
b. Construct a Lorenz curve showing the quintile
distribution of earnings for this economy.
c. What would be the likely impact of unionization of this
entire workforce on the Lorenz curve? Explain.
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Post Reply