Statistics - Assignment Example

A researcher has collected information from 5,000 respondents regarding their income every month. This income include encompasses that which is collected from the practice of profession or through enterprise. As long as it is something that an individual sources out from the labor that they exert, it is considered to be an income. After gathering the responses, it can be seen that it is characterized to be an interval data set. This is because there is a natural zero when it comes to individual income and that there are also interpretations that can be taken from the differences between the responses (Simon, 2002).

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Likewise, both the ratios and differences can be interpreted for such (Simon, 2002). Considering the data gathered to be normally distributed, this means that the responses are symmetrical with the measures of central tendency to be one or approximately the same. This means that for a given data set, it could be shown that the average individual income derived by the respondents is $5,130. The most frequently occurring income, which is called the mode, is determined to be $5,000.

In addition to this, the median, which is computed by taking the average between the 2500th answer and the 2501st answer, hypothetically is determined to be $5,100. In consideration of these measures of central tendency, it could be determined that the data set is normally distributed because it can be seen that the mean, median, and mode are almost similar. The probability value that is considered for a particular normal curve determines the area within the curve to which a certain value may fall. For example, using a . 05 probability value measures the probability that a particular value lies within the specified range.