In a study of incomes of individual adults in the United Sta

In a study of incomes of individual adults in the United States, it is observed that many people have no income or very small incomes, while there are very few people with extremely large incomes, so a graph of the incomes is skewed instead of being symmetric. A researcher states that because incomes are a normal occurrence the distribution of incomes is a normal distribution. Is this statement correct? Why or why not?

Solution

Since the population size is sufficiently large, even the distribution of the income does not have symmetric distribution, we assume that the distribution follows approximately symmetric distribution. So the given statement is correct.