Statistic

A. Can you tell us which is non-linearity test?

B. In practice, we have outliers in our data set quite often. If the outlier is legitimate, we have a number of ways in dealing with it besides deleting it from the data set. One way in dealing with it is to use the median rather than the mean as the measure of centrality/location. In this regard, let's consider this random sample of household income (in unit of 10k's) from a major city:

{5,6,7,8,9,100}

It just happens that a rich CEO of a High Tech company was selected in the sample (it happens sometimes). For this sample, can you perform the following:

1. find the sample mean and sample median

2. tell us which of these two measures is more appropriate for representing the "center" or "typical" value of the data set

3. communicate the result of this sample to the general public

4. determine whether we have outliers in this data set using the IQR rule