which emphasizes the distribution. The income distribution is concentrated in the center portion of the graph. The code to generate the two plots in Figure 3.11 is provided next. The rug() function creates a one-dimensional density plot on the bottom of the graph to emphasize the distribution of the observation. # randomly generate 4000 observations from the log normal distribution income <- rlnorm(4000
Figure 3.11(b) shows a density plot of the logarithm of household income values
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