Question

1. The following are two hypothetical statements by American politicians.

Politician A: “Our economy is in the crapper! Thirty states had falling incomes last year.”

Politician B: “Our economy is showing appreciable gains: Seventy percent of Americans had rising incomes last year.”

1. Suppose both statements are true. How to reconcile these two seemingly contradicting statements? (4 points)
2. What lessons can we learn about descriptive statistics from this example? (4 points)

Answer 1

A: As both statement are saying something about economy of the USA states. As statement A saying about economy depression and Statement B are saying about economy boom. That means one is positive aspects for economy and another is negative aspects for economy of USA. Is because Statement A said that out of 50 states in USA more than 50 % states population income decreasing. And in statement B said that 70% population income incresing. Thus we say that both statement are contradicting to each other.

B: As analysis of above example, being a statistician we conclude that we use Median(Measure of central tendency) used for devide total population according to income. We also use Quartile deviation( Measure of dispersion) like as first quartile , secon quartile and third quartile.