Statistical Modeling: A Fresh Approach (Project MOSAIC Books) by Daniel Kaplan

Author:Daniel Kaplan [Kaplan, Daniel]
Language: eng
Format: azw3, epub
Publisher: Project MOSAIC Books
Published: 2017-07-11T04:00:00+00:00

Example: High Income

In most societies, incomes have a skew distribution; very high incomes are more common than you might expect. In the United States, for instance, data on middle-income families in 2005 suggests a mean of about $50,000 per year and a standard deviation of about $20,000 per year (taking "middle-income" to mean the central 90% of families). If incomes were distributed in a bell-shaped, normal manner, this would imply that the 99th percentile of income would be $100,000 per year. But this understates matters. Rather than being normal, the distribution of incomes is better approximated with a log-normal distribution.(Montroll and Schlesinger 1983) Using a log-normal distribution with parameters set to match the observations for middle-income familes gives a 99th percentile of $143,000.

Examples of Log-normal Models

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.