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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?

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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.

Back to Exercise: Summarising Data.

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Last updated: 27 July, 2009.

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