Question

PLEASE ANSWER EACH QUESTION IN DETAIL! THANKYOU IN ADVANCE!

For this assignment, you will use histograms to decide if datasets follow a normal distribution. Using the following sets of data, create a histogram for each one with your graphing calculator.

Property Taxes	Car Insurance Premiums	Annual Salary
2500	345	55000
3800	800	37000
5000	472	50000
3500	398	80000
3000	450	75000
4800	587	65000
4900	361	55000
2000	649	50000
5000	350	45000

Then provide a summary of 1-2 paragraphs in which you address the following:

Identify which variables had normally distributed data, based on your visual inspection of the histograms.

Identify which variables did not have normally distributed data, based on the histograms.

Identify and explain any characteristics relating to the data that could cause it to not be normally distributed. For example, were there outliers? If so, what were they? What could be done with the data to remove them?

Answer 1

From the above three histogram we can clearly see form histogram of property taxes variable is not from a normal distribution,for the second variable i.e, car insurance premium it can be assume that it is came from truncated normal distribution where left side of the distribution been truncated.The third variable annual salary is not following normal distribution.

First variable has its maximum weightage on values from 4000 to 5000.so this distribution is like an discrete distribution with highest weightage on higher values.In the second variable we can see a right tail pattern and we may say the largest value 800 is an outlier for this distribution.In the third variable there is no outlier.We can detect outlier and them we can remove that high value data from the distribution and get the outlier free original distribution.