Question 1.49

1.49 What do the trade balance graphical summaries show?

bestbus

Refer to the previous exercise.

  1. Use graphical summaries to describe the distribution of the trade balance for these countries.
  2. Give the names of the countries that correspond to extreme values in this distribution.
  3. Reanalyze the data without the outliers.
  4. Summarize what you have learned about the distribution of the trade balance for these countries.

Include appropriate graphical and numerical summaries as well as comments about the outliers.

1.49

(b) Montenegro has a really low trade balance of -45.3. Kuwait, 42.2, and Libya, 40.7, have really high trade balances. (c) . . . . . The distribution and numerical summaries are almost identical before and after the outliers are removed. (d) Overall, the distribution is very symmetrical so that if some countries export a lot, there are other countries that import just as much. The mean and median trade balance is very close to 0. The outliers had almost no effect on the distribution or numerical summaries. Essentially, the outliers form longer tails on the curve.