Solved

If We Model After-Tax Household Income by a Normal Distribution

Question 57

Multiple Choice

If we model after-tax household income by a normal distribution, then the figures of a 1995 study imply the information in the following table. Assume that the distribution of incomes in each country is bell-shaped and symmetric.  Country  U.S.  Canada  Switzerland  Germany  Sweden  Mean Household  Income $38,000$35,000$39,000$34,000$32,000 Standard Deviation $21,000$17,000$16,000$14,000$11,000\begin{array} { | c | c | c | c | c | c | } \hline \text { Country } & \text { U.S. } & \text { Canada } & \text { Switzerland } & \text { Germany } & \text { Sweden } \\\hline \begin{array} { c } \text { Mean Household } \\\text { Income }\end{array} & \$ 38,000 & \$ 35,000 & \$ 39,000 & \$ 34,000 & \$ 32,000 \\\hline \text { Standard Deviation } & \$ 21,000 & \$ 17,000 & \$ 16,000 & \$ 14,000 & \$ 11,000 \\\hline\end{array} If we define a "poor" household as one whose after-tax income is at least 1.3 standard deviations below the mean, find the household income of a poor family in Switzerland.


A) $59,800 or less
B) $59,800 or more
C) $18,200 or less
D) $16,000 or less
E) $18,200 or more

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents