This week we are covering one of the most used distributions in empirical studies, Normal distribution. However as you read in your book, we need to have a tool to assess normality in a more robust way, page 66. Namely, you could use a normal quantile plot to assess normality. For example, the following Normal Quantile plot demonstrates an approximate normality for some distribution as we can draw a 45 degree line to check if points fall around this line:
In this assignment, we continue the idea of normality and departures from it. Example 48 on page 69 gives the distribution of ticket prices from a web sporting events ticket facilitator, StubHub. The following figure is the histogram of 2015 NCAA Women’s Semifinal sales per seat.
Given the interesting distribution, a trimodal distribution in the following histogram, discuss how a normal quantile plot looks for a distribution like this one. Draw a plot similar to the above plot and explain departures from normality.