Suggested answer to exercise: Summarising Data, 7

Question 7: What would be the effect on the skewness of the earnings distribution if the minimum wage were made a fixed proportion of the median, assuming that this figure was then higher than the current wage of some members of the population?

Suggested answer

The distribution would be become more positively skew. The smallest wages would be increased and the short, left-hand tail of the distribution would be made even shorter.

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