Suppose a hypothetical economy consists of 20 nonunionized private sector workers who have the following annual earnings
Posted: Thu Apr 28, 2022 12:32 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.
Using annual earnings ranges of $10,000 (i.e., 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.
Construct a Lorenz curve showing the quintile distribution of
earnings for this economy.
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.
Using annual earnings ranges of $10,000 (i.e., 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.
Construct a Lorenz curve showing the quintile distribution of
earnings for this economy.
What would be the likely impact of unionization of this entire
workforce on the Lorenz curve? Explain.