Question

Scenario: A 28 year old with a bachelors degree. They have no children and is a new home owner in the state of Maryland. As head of the household must determine a household budgeting plan.

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.

Variable Name In DataSet	Description	Type of variable (Qualitative or quantitative
Income	annual househole income in USD	Quantitative
Martial Status
Age
Family Size
Housing

Reason(s) for selecting the variable and expected Outcome(s)

1) Income

2) Martial Status

3) Age

4) Family Size

5) Housing

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: 1.   If there are any outliers or the data is not normally distributed, the median is the best measure of central tendency. 2.   The variable is quantitative. I am using sample standard deviation for three reasons: 1.   The data is a sample from a larger data set. 2.   It is the most commonly used measure of dispersion. 3.   The variable is quantitative.
Marital Status
Age
Family size
Housing

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 .
martial status
age
family size
housing

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).

Answer 1

Variable name in dataset	Description	Type of variable
Income	annual household income in USD	Quantitative
Marital Status	married	Qualitative
Age	28 years	Quantitative
Family Size	2 person	Quantitative
Housing	Owned house	Qualitative

Table 2. Numerical Summaries of the Selected Variables

Variable name in dataset	Measures of Central Tendency and Dispersion	Rationale for Why Appropriate
Income	Number of Observations ?   Median ?   Sample Standard Deviation	I am using median for two reasons: 1.   If there are any outliers or the data is not normally distributed, the median is the best measure of central tendency. 2.   The variable is quantitative. I am using sample standard deviation for three reasons: 1.   The data is a sample from a larger data set. 2.   It is the most commonly used measure of dispersion. 3.   The variable is quantitative.
Marital Status	?   Mode	I am using mode as: 1.   The variable is qualitative.
Age	Number of Observations ?   Mean ?   Sample Standard Deviation	I am using mean for two reasons: 1.   crude measure of central tendency. 2.   The variable is quantitative. I am using sample standard deviation for three reasons: 1.   The data is a sample from a larger data set. 2.   It is the most commonly used measure of dispersion. 3.   The variable is quantitative.
Family Size	Number of Observations ?   Mean ?   Sample Standard Deviation	I am using mean for two reasons: 1.   crude measure of central tendency. 2.   The variable is quantitative. I am using sample standard deviation for three reasons: 1.   The data is a sample from a larger data set. 2.   It is the most commonly used measure of dispersion. 3.   The variable is quantitative.
Housing	mode	I am using mode as: 1.   The variable is qualitative.

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

Variable name in dataset	Graph and/or Table	Rationale for Why Appropriate
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.
Marital Status	Pie chart or Bar chart	Effectively display the relative frequencies of a small number of groups of qualitative variable
Age	histogram	Histogram is one of the best to show whether data follows the normal distribution
Family Size	histogram	Histogram is one of the best to show whether data follows the normal distribution
Housing	Pie chart or Bar chart	Effectively display the relative frequencies of a small number of groups of qualitative variable