Suppose a hypothetical economy consists of 20 nonunionized private sector workers who have the following annual earnings
Posted: Wed Apr 27, 2022 1:04 pm
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.
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.