Income at the coffee shop. The first histogram below shows the distribution of the yearly incomes of 40 patrons at a college coffee shop. Suppose two new people walk into the coffee shop: one making $225,000 and the other $250,000. The second histogram shows the new income distribution. Summary statistics are also provided.
(1) $60k $62.5k $65k $67.5k $70k
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4
8
12
(2) $60k $110k $160k $210k $260k
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4
8
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(1) (2)
n 40 42 Min. 60,680 60,680
1st Qu. 63,620 63,710 Median 65,240 65,350
Mean 65,090 73,300 3rd Qu. 66,160 66,540
Max. 69,890 250,000 SD 2,122 37,321
(a) Would the mean or the median best represent what we might think of as a typical income for the 42 patrons at this coffee shop? What does this say about the robustness of the two measures?
(b) Would the standard deviation or the IQR best represent the amount of variability in the incomes of the 42 patrons at this coffee shop? What does this say about the robustness of the two measures?