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Which of the following statements is correct about the shape of the distribution of NSW income?a.NSW income distribution is right-skewed, with a longer tail to the right.b.NSW income distribution is left-skewed, with a longer tail to the right.c.NSW income distribution is right-skewed with a longer tail to the left.d.NSW income distribution is left-skewed with a longer tail to the left.

Question

Which of the following statements is correct about the shape of the distribution of NSW income?a.NSW income distribution is right-skewed, with a longer tail to the right.b.NSW income distribution is left-skewed, with a longer tail to the right.c.NSW income distribution is right-skewed with a longer tail to the left.d.NSW income distribution is left-skewed with a longer tail to the left.

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Solution

The skewness of a distribution is a measure of the asymmetry of the probability distribution of a real-valued random variable about its mean.

If the skewness is greater than zero, then the distribution is right-skewed. If the skewness is less than zero, then the distribution is left-skewed.

According to the provided statistics, the skewness of the NSW income distribution is 1.482, which is greater than zero. This indicates that the distribution is right-skewed.

A right-skewed distribution has a long tail on the right.

Therefore, the correct statement is:

a. NSW income distribution is right-skewed, with a longer tail to the right.

This problem has been solved

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