The Bahamas is a tropical paradise made up of 700 islands sprinkled over 100,000 square miles...

The Bahamas is a tropical paradise made up of 700 islands sprinkled over 100,000 square miles of the Atlantic Ocean. According to the figures released by the government of the Bahamas, the mean household income in the Bahamas is $34,627 and the median income is $31,880. A demographer decides to use the lognormal random variable to model this nonsymmetric income distribution. Let Y represent household income, where for a normally distributed X, Y = e^X. In addition, suppose the standard deviation of household income is $11,000. Use this information to answer the following questions. [You may find it useful to reference the z table.]

a. Compute the mean and the standard deviation of X. (Round your intermediate calculations to at least 4 decimal places and final answers to 4 decimal places.)

b. What proportion of the people in the Bahamas have household income above the mean? (Round your intermediate calculations to at least 4 decimal places, “z” value to 2 decimal places, and final answer to 4 decimal places.)

c. What proportion of the people in the Bahamas have household income below $14,000? (Round your intermediate calculations to at least 4 decimal places, “z” value to 2 decimal places, and final answer to 4 decimal places.)

d. Compute the 90th percentile of the income distribution in the Bahamas. (Round your intermediate calculations to at least 4 decimal places, “z” value to 3 decimal places, and final answer to the nearest whole number.)

Expert Solution

orchestra answered 1 year ago

The Bahamas is a tropical paradise made up of 700 islands sprinkled over 100,000 square miles...

The Bahamas is a tropical paradise made up of 700 islands sprinkled over 100,000 square miles of the Atlantic Ocean. According to the figures released by the government of the Bahamas, the mean household income in the Bahamas is $34,803 and the median income is $31,729. A demographer decides to use the lognormal random variable to model this nonsymmetric income distribution. Let Y represent household income, where for a normally distributed X, Y = eX. In addition, suppose the standard...

12 cases of a disease are found over an area of 50 square miles. (what type...

12 cases of a disease are found over an area of 50 square miles. (what type of distribution is this, i.e. Poisson, Gaussian, etc.) Within the study area, if the cases are distributed at random places with the same chance to occur anywhere, what is the probability of finding 4 cases within an 8 square mile area? Calculate by hand. What is the average number of cases within the 8 square mile area? Calculate by hand.

Problem 3. A square loop of wire is made up of 50 turns of wire, 40...

Problem 3. A square loop of wire is made up of 50 turns of wire, 40 cm on each side. The loop is immersed in a 0.4−T magnetic field perpendicular to the plane of the loop. The loop of wire has little resistance but it is connected to two resistors in parallel as shown. When the loop of wire is rotated by 180°, how much charge flows through the circuit? How much charge goes through the smaller resistor? What is...

The rectangle below is made up of 12 squares of the same size. Find the perimeter of the rectangle if the area of the rectangle is equal to 1728 square cm.

Question

The Bahamas is a tropical paradise made up of 700 islands sprinkled over 100,000 square miles...

Solutions

Expert Solution

Related Solutions

The Bahamas is a tropical paradise made up of 700 islands sprinkled over 100,000 square miles...

12 cases of a disease are found over an area of 50 square miles. (what type...

Problem 3. A square loop of wire is made up of 50 turns of wire, 40...

The rectangle below is made up of 12 squares of the same size. Find the perimeter of the rectangle if the area of the rectangle is equal to 1728 square cm.