Federal Minimum Wage (for Years in Which a Change Occurred) Year Actual dollars 1996 dollars 1938 $0.25 $2.78 1939 $0.30 $3.39 1945 $0.40 $3.49 1950 $0.75 $4.88 1956 $1.00 $5.77 1961 $1.25 $6.41 1967 $1.40 $6.58 1968 $1.60 $7.21 1974 $2.00 $6.37 1976 $2.30 $6.34 1978 $2.65 $6.38 1979 $2.90 $6.27 1981 $3.35 $5.78 1990 $3.50 $4.56 1991 $4.25 $4.90 1996 $4.75 $4.75 1997 $5.15 $5.03 2007 $5.85 $4.42 2008 $6.55 $4.77 2009 $7.25 $5.12 2016* $7.25 $4.74 In terms of purchasing power, would you rather have earned the minimum wage in 1968 or 2009? Explain.
Inverse Normal Distribution
The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.
Mean, Median, Mode
It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.
Z-Scores
A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.
Federal Minimum Wage (for Years in Which a Change Occurred)
| Year | Actual dollars | 1996 dollars |
|---|---|---|
| 1938 | $0.25 | $2.78 |
| 1939 | $0.30 | $3.39 |
| 1945 | $0.40 | $3.49 |
| 1950 | $0.75 | $4.88 |
| 1956 | $1.00 | $5.77 |
| 1961 | $1.25 | $6.41 |
| 1967 | $1.40 | $6.58 |
| 1968 | $1.60 | $7.21 |
| 1974 | $2.00 | $6.37 |
| 1976 | $2.30 | $6.34 |
| 1978 | $2.65 | $6.38 |
| 1979 | $2.90 | $6.27 |
| 1981 | $3.35 | $5.78 |
| 1990 | $3.50 | $4.56 |
| 1991 | $4.25 | $4.90 |
| 1996 | $4.75 | $4.75 |
| 1997 | $5.15 | $5.03 |
| 2007 | $5.85 | $4.42 |
| 2008 | $6.55 | $4.77 |
| 2009 | $7.25 | $5.12 |
| 2016* | $7.25 | $4.74 |
In terms of purchasing power, would you rather have earned the minimum wage in 1968 or 2009? Explain.
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