Suppose the average family income in an area is $10,000.
a) Find an upper bound for the percentage of families with incomes over $50,000.
b)Find a better upper bound if it is known that the standard deviation of incomes is $8000.
Suppose the average family income in an area is $10,000.
a) Find an upper bound for the percentage of families with incomes over $50,000.
b)Find a better upper bound if it is known that the standard deviation of incomes is $8000.
For this assume that familiea have either zero income or an income of . then the mean income is:
and solve for .
Use the one sided Chebyshev inequality (it can be found here about two thirsd of the way down)b)Find a better upper bound if it is known that the standard deviation of incomes is $8000.
CB