Question

Which of the following statements is likely to be true?

a) The median personal income of California taxpayers would probably be near the mean.
b) For personal incomes in California, outliers in either tail would be equally likely.
c) The interquartile range offers a measure of income inequality among California residents.
d) For income, the sum of squared deviations about the mean is negative about half the time.

Answer 1

c. The interquartile range offers a measure of income inequality among California residents.

Explanation:

The range is the midspread which measures statistical dispersion. This is also known as H-spread which is equal to the difference between 75th percentile and 25th percentile. In the given scenario the interquartile range offers measure of income inequality among California residents.