State Entitlement Programs
Franklin Joiner, director of health, education, and welfare, had
just left a meeting with the state's newly elected governor and
several of the other recently appointed department heads. One of
the governor's campaign promises was to try to halt the rising cost
of a certain state entitlement program. In several speeches, the
governor indicated the state of Idaho should allocate funds only to
those individuals ranked in the bottom 10% of the state's income
distribution. Now the governor wants to know how much one could
earn before being disqualified from the program, and he also wants
to know the range of incomes for the middle 95% of the state's
income distribution.
Frank had mentioned in the meeting that he thought incomes in the
state could be approximated by a normal distribution and that mean
per capita income was about $33,000 with a standard deviation of
nearly $9,000. The governor was expecting a memo in his office by
3:00 P.M. that afternoon with answers to his questions.
Required Tasks:
1. (7 points) Assuming that incomes can be approximated using a
normal distribution with the specified mean and standard deviation,
calculate the income that cut off the bottom 10% of incomes.
Provide your Minitab output here:
2. (7 points) Assuming that incomes can be approximated using a
normal distribution with the specified mean and standard deviation,
calculate the middle 95% of incomes. Hint: This requires
calculating two values.
Provide your Minitab output here:
3. (6 points) Write a short memo describing your results and how
they were obtained. Your memo should clearly state the income that
would disqualify people from the program, as well as the range of
incomes in the middle 95% of the state's income distribution.
Provide your short, well-written and professional report
here
Get Answers For Free
Most questions answered within 1 hours.