Question

Case Study 1 - Data Visualization and Descriptive Statistics

The data file Home_Values.xlsx contains median home values (Home Value), median household income (HH Inc), median per capita (Per Cap Inc) and percent of homes that are owner occupied (Pct Owner Occ) for each state and the District of Columbia. Prior to a more detailed analysis of the data, a company wants to get a good understanding of the 4 variables (e.g. central tendency, variability, shape of the distribution, pattern of relationship between the variables). A company representative contracts with you to help with this process. To help the company get a better understanding of the data, you are asked to perform the following analysis steps:

I

State	Home Value	HH Inc	Per Cap Inc	Pct Owner Occ
Iowa	119200	48872	25335	73.2
Kansas	122600	49424	25907	69.4
Kentucky	116800	41576	22515	69.9
Louisiana	130000	43445	23094	68.2
Maine	176200	46933	25385	73.1
Maryland	329400	70647	34849	69
Massachusetts	352300	64509	33966	64
Michigan	144200	48432	25135	74.2
Minnesota	206200	57243	29582	74.2
Mississippi	96500	37881	19977	70.8
Missouri	137700	46262	24724	70
Montana	173300	43872	23836	69
Nebraska	123900	49342	25229	68.6
Nevada	254200	55726	27589	60.1
New Hampshire	253200	63277	31422	72.6
New Jersey	357000	69811	34858	66.9
New Mexico	158400	43820	22966	69.6

Answer 1

From the above table, the mean and median of the Home Value are  191241 and 158400 respectively. Here, the mean is greater than the median and skewness value 0.99 with a positive sign. So, this variable has positive skewness. Further, the standard deviation of this variable is 86581.

The mean and median of the HH Inc are  51828 and 48872 respectively. Here, the mean is greater than the median and skewness value 0.74 with a positive sign. So, this variable has positive skewness. Further, the standard deviation of this variable is 9995.

The mean and median of the Per Cap Inc are  26845 and 25335 respectively. Here, the mean is greater than the median and skewness value 0.72 with a positive sign. So, this variable has positive skewness. Further, the standard deviation of this variable is 4523.

The mean and median of the Pct Owner Occ are  69.576 and 69.600 respectively. Here, the mean is greater than the median and skewness value -1.08 with a positive sign. So, this variable has negative skewness. Further, the standard deviation of this variable is 3.630.

Home value has a positive association with HH Inc and Per Cap Inc. Whereas, Home value has a negative association with variable Pct Owner Occ.

HH Inc has a positive association with the variables Per Cap Inc, whereas, it does not have the association with variable Pct Owner Occ.

At last, the variable Per Cap Inc does not have the association with Pct Owner Occ.