Finance and accounting Assignment Example | Topics and Well Written Essays - 1500 words - 1

Finance and accounting - Assignment Example In contrast, the income distribution for women is highly skewed towards higher income range. The median for men’s income is 2217.5 while the media for women’s income is 1437.5. On the other hand, the mean for men’s income is 2635.95 and the mean for women’s income is 1417 signalling a large difference in income between both groups. Men as well as women see highest income frequency for incomes between 1500 and 2000. In the case of men’s income, the outliers are present beyond the income level of 7000. In the case of women’s income, the only outlier is in the 3500 to 4000 range. Men’s income is more affected by outliers as expressed by the standard deviation of 1701.16 while women’s income is not as deeply affected by outliers as expressed by the standard deviation of 751.55 (Freeman et al., 2007). Outliers for men’s and women’s income distribution can be dealt with by employing statistical corrections such as by converting the data to a normal distribution. Moreover, the outliers in the case of men can be seen as aberrations from the normal distribution of wealth and can be neglected altogether given the fact that these deviations affect the population sample’s credibility. The outliers are not only placed well away from the regular distribution but present an insignificant proportion of the overall sample set. It could be reasoned that these samples originate from clients who do not otherwise fit into the socio-economic group being studied. The same is true of women’s income. The aberration results in small frequency counts that are placed well above the regular income distribution pattern. Similar to the men’s case, the outliers in the case of women can be ignored to produce better results. The answers for part (a) and part(b) tend to differ from each other based on the use of a normal distribution curve and the use of the actual sample. Using the