Question

Assignment #1: Descriptive Statistics Data Analysis Plan

Identifying Information

Student (Full Name):

Class:

Instructor:

Date:

Scenario: Please write a few lines describing your scenario and the four variables (in addition to income) you have selected.

Use Table 1 to report the variables selected for this assignment. Note: The information for the required variable, “Income,” has already been completed and can be used as a guide for completing information on the remaining variables.

Table 1. Variables Selected for the Analysis

Variable Name in the Data Set	Description (See the data dictionary for describing the variables.)	Type of Variable (Qualitative or Quantitative)
Variable 1: “Income”	Annual household income in USD.	Quantitative
Variable 2:
Variable 3:
Variable 4:
Variable 5:

Reason(s) for Selecting the Variables and Expected Outcome(s):

Variable 1: “Income” -

Variable 2: “ “ -

Variable 3: “ “ -

Variable 4: “ “ -

Variable 5: “ “ -

Data Set Description:

Proposed Data Analysis:

Measures of Central Tendency and Dispersion

Complete Table 2. Numerical Summaries of the Selected Variables and briefly explain why you choose those measurements. Note: The information for the required variable, “Income,” has already been completed and can be used as a guide for completing information on the remaining variables.

Table 2. Numerical Summaries of the Selected Variables

Variable Name	Measures of Central Tendency and Dispersion	Rationale for Why Appropriate
Variable 1: “Income”	Number of Observations Median Sample Standard Deviation	I am using median for two reasons: If there are any outliers or the data is not normally distributed, the median is the best measure of central tendency. The variable is quantitative. I am using sample standard deviation for three reasons: The data is a sample from a larger data set. It is the most commonly used measure of dispersion. The variable is quantitative.
Variable 2:
Variable 3:
Variable 4:
Variable 5:

Graphs and/or Tables

Complete Table 3. Type of Graphs and/or Table for Selected Variables and briefly explain why you choose those graphs and/or tables. Note: The information for the required variable, “Income,” has already been completed and can be used as a guide for completing information on the remaining variables.

Table 3. Type of Graphs and/or Tables for Selected Variables

Variable Name	Graph and/or Table	Rationale for why Appropriate?
Variable 1: “Income”	Graph: I will use the histogram to show the normal distribution of data.	Histogram is one of the best plot to show the normal distribution of quantitative level data .
Variable 2:
Variable 3:
Variable 4:
Variable 5:

Missing data

STAT200 Introduction to Statistics

The dataset for Written Assignments

Description of Dataset:

The data is a random sample from the US Department of Labor’s 2016 Consumer Expenditure Surveys (CE) and provides information about the composition of households and their annual expenditures (https://www.bls.gov/cex/). It contains information from 30 households, where a survey responder provided the requested information; it is all self-reported information. This dataset contains four socioeconomic variables (whose names start with SE) and four expenditure variables (whose names start with USD).

Description of Variables/Data Dictionary:

The following table is a data dictionary that describes the variables and their locations in this dataset (Note: Dataset is on second page of this document):

Variable Name	Location in Dataset	Variable Description	Coding
UniqueID#	First Column	Unique number used to identify each survey responder	Each responder has a unique number from 1-30
SE-MaritalStatus	Second Column	Marital Status of Head of Household	Not Married/Married
SE-Income	Third Column	Annual Household Income	Amount in US Dollars
SE-AgeHeadHousehold	Fourth Column	Age of the Head of Household	Age in Years
SE-FamilySize	Fifth Column	Total Number of People in Family (Both Adults and Children)	Number of People in Family
USD-Annual Expenditures	Sixth Column	Total Amount of Annual Expenditures	Amount in US Dollars
USD-Housing	Seventh Column	Total Amount of Annual Expenditure on Housing	Amount in US Dollars
USD-Electricity	Eighth Column	Total Amount of Annual Expenditure on Electricity	Amount in US Dollars
USD-Water	Ninth Column	Total Amount of Annual Expenditure on Water	Amount in US Dollars

How to read the data set: Each row contains information from one household. For instance, the first row of the dataset starting on the next page shows us that: the head of household is not married and is 53 years old, has an annual household income of $97,681, a family size of 4, annual expenditures of

$56,124, and spends $18,676 on housing, $1,468 on electricity, and $551 on water.

UniqueID#	SE-MaritalStatus	SE-Income	SE-AgeHeadHousehold	SE-FamilySize	USD-AnnualExpenditures	USD-Housing	USD-Electricity	USD-Water
1	Not Married	97681	53	4	56124	18676	1468	551
2	Not Married	96727	39	2	56440	18376	1441	542
3	Not Married	95432	51	1	55120	18391	1458	548
4	Not Married	96928	43	3	55932	18701	1479	520
5	Not Married	94929	59	2	55247	18483	1451	546
6	Not Married	95744	52	4	55963	18435	1465	555
7	Not Married	95366	48	2	57082	18576	1478	538
8	Not Married	96697	49	2	56453	18520	1469	545
9	Not Married	96572	59	2	56515	18648	1480	552
10	Not Married	96653	51	4	56488	18838	1470	535
11	Not Married	96664	53	3	55558	18502	1478	553
12	Not Married	96621	54	2	55746	18149	1455	540
13	Not Married	96886	44	2	55321	18312	1450	523
14	Not Married	96244	56	4	56051	18484	1457	539
15	Not Married	94867	60	1	55512	18633	1485	523
16	Married	98351	34	3	76558	26513	1342	547
17	Married	109312	37	6	80801	25392	1514	743
18	Married	111478	29	5	82699	24949	1503	814
19	Married	107511	56	3	83347	22915	1723	773
20	Married	95835	54	3	73092	23252	1300	705
21	Married	110553	23	4	81419	26991	1421	719
22	Married	95706	52	4	71597	22376	1315	694
23	Married	110651	58	4	83766	22899	1682	754
24	Married	98491	22	3	75996	26283	1326	620
25	Married	99610	36	2	73550	27164	1330	627
26	Married	97663	51	3	72971	23150	1320	689
27	Married	115766	41	4	83448	25679	1511	767
28	Married	107235	38	6	83471	26074	1486	769
29	Married	106627	56	3	82676	22414	1688	709
30	Married	109523	37	5	84002	26771	1457	768

Answer 1

I selected MaritalStatus, FamilySize, AnnualExpenditures and Food.

The data of 30 households is provided with details about the family size, income and expenditures. The scenario is of a Married single parent with a family size of 2. The age of head of the household is 35 years. The aim here is to determine the household budget plan. The variables selected are marital status of the head of the household, family size, annual expenditures and food.

Reason(s) for Selecting the Variables and Expected Outcome(s):

1. Variable 1: “Income” – Income is the upper limit of the budget to be determined, hence it is an important factor to help the household fix the budget accordingly. Higher the income, higher the budget can be planned, and lower income restricts the budget.
2. Variable 2: “MaritalStatus “– Marital status of the head of the household actually lets us know about the routine expenses. A married head is bound to have higher expenses as compared to a single person. Hence it is one of the pre-requisite factors that affect the budget planning of the household.
3. Variable 3: “FamilySize “ - The aim of the data is to plan out the budget for the household. More the members in the family more would be the expenses, hence it is important to know the number of members in the family.
4. Variable 4: “AnnualExpenditures “ - An appropriate budget incorporates all the expenses incurred during an year. Hence it is pivotal to consider the annual expenditures of each of the households in order to determine the appropriate budget. High expenses call for higher budget for the household.
5. Variable 5: “Food“- Food is an essential expense and no budget can be complete without including the expense related to this factor. Hence food becomes an essential part of budget planning for every household

Data Set Description:

The data has been analyzed in two parts.

The first part deals with the statistics of the single households. The mean income for them is USD 96458. Average age of heads of such households is 50 years, with a family size of 2 to 3. The annual expenditures are approximately USD 55918, with expenses on food USD 7018.

For the households with married heads, mean income level is USD 103264 with annual expenses USD 77807, and exclusively food expenses are USD 10210.5. The family size is between 3 to 4 members and the age of the head of the household is 45 years.

Table 1. Variables Selected for the Analysis

Variable Name in data set	Description	Type of Variable (Qualitative or Quantitative)
Variable 1: “Income”	Annual household income in USD.	Quantitative
Variable 2: “MaritalStatus”	Marital Status of Head of Household	Qualitative
Variable 3: “FamilySize”	Total Number of People in Family (Both Adults and Children)	Quantitative
Variable 4: “AnnualExpenditures”	Total Amount of Annual Expenditures	Quantitative
Variable 5: “Food”	Total Amount of Annual Expenditure on Food	Quantitative