Question

Assignment #3: Inferential Statistics Analysis and Writeup

Part A: Inferential Statistics Data Analysis Plan and Computation

Introduction: I chose to imagine I am a 36 year old married individual with a large family. (UniqueID#30)

Variables Selected:

Table 1: Variables Selected for Analysis

Variable Name in the Data Set	Variable Type	Description	Qualitative or Quantitative
Variable 1: Marital Status	Socioeconomic	Marital Status of Head of Household	Qualitative
Variable 2: Housing	Expenditure	Total Amount of Annual Expenditure on Housing	Quantitative
Variable 3: Transport	Expenditure	Total Amount of Annual Expenditure on Transportation	Quantitative

Data Analysis:

1. Confidence Interval Analysis: For one expenditure variable, select and run the appropriate method for estimating a parameter, based on a statistic (i.e., confidence interval method) and complete the following table (Note: Format follows Kozak outline):

Table 2: Confidence Interval Information and Results

Name of Variable:

State the Random Variable and Parameter in Words:

Confidence interval method including confidence level and rationale for using it:

State and check the assumptions for confidence interval:

Method Used to Analyze Data:

Find the sample statistic and the confidence interval:

Statistical Interpretation:

2. Hypothesis Testing: Using the second expenditure variable (with socioeconomic variable as the grouping variable for making two groups), select and run the appropriate method for making decisions about two parameters relative to observed statistics (i.e., two sample hypothesis testing method) and complete the following table (Note: Format follows Kozak outline):

Table 3: Two Sample Hypothesis Test Analysis

Research Question:

Two Sample Hypothesis Test that Will Be Used and Rationale for Using It:

State the Random Variable and Parameters in Words:

State Null and Alternative Hypotheses and Level of Significance:

Method Used to Analyze Data:

Find the sample statistic, test statistic, and p-value:

Conclusion Regarding Whether or Not to Reject the Null Hypothesis:

Part B: Results Write Up

Confidence Interval Analysis:

Two Sample Hypothesis Test Analysis:

Discussion:

Data Set:

UniqueID#	SE-MaritalStatus	SE-Income	SE-AgeHeadHousehold	SE-FamilySize	USD-AnnualExpenditures	USD-Food	USD-Housing	USD-Transport
1	Not Married	95432	51	1	55120	7089	18391	115
2	Not Married	97469	35	4	54929	6900	18514	145
3	Not Married	96664	53	3	55558	7051	18502	168
4	Not Married	96653	51	4	56488	6943	18838	124
5	Not Married	94867	60	1	55512	6935	18633	131
6	Not Married	97912	49	1	55704	6937	18619	152
7	Not Married	96886	44	2	55321	6982	18312	153
8	Not Married	96244	56	4	56051	7073	18484	141
9	Not Married	95366	48	2	57082	7130	18576	149
10	Not Married	96727	39	2	56440	7051	18376	120
11	Not Married	96697	49	2	56453	6971	18520	136
12	Not Married	95744	52	4	55963	7040	18435	146
13	Not Married	96572	59	2	56515	7179	18648	123
14	Not Married	98717	40	3	56393	7036	18389	114
15	Not Married	94929	59	2	55247	6948	18483	133
16	Married	95778	42	4	73323	9067	22880	201
17	Married	109377	48	4	83530	10575	23407	99
18	Married	95706	52	4	71597	8925	22376	181
19	Married	95865	46	1	74789	9321	22621	168
20	Married	109211	42	4	82503	11566	22219	62
21	Married	95994	55	4	73404	9231	22852	177
22	Married	114932	44	5	81186	11077	26411	153
23	Married	112559	39	3	80934	11189	25531	73
24	Married	95807	56	4	72949	9210	23139	186
25	Married	99610	36	2	73550	9513	27164	33
26	Married	95835	54	3	73092	9111	23252	186
27	Married	102081	42	4	82331	11738	23374	121
28	Married	104671	41	4	82786	10420	22245	84
29	Married	107028	46	4	82816	10840	25671	109
30	Married	114505	36	5	78325	11375	26006	140

Answer 1

Only part 1 done - 1. Confidence Interval Analysis:

Name of Variable: USD- Food

State the Random Variable and Parameter in Words:
Here the random variable is the expenditure done on fodd and the parameter taken into consideration is mean.

Confidence interval method including confidence level and rationale for using it:
We are going to find a 90% confidence interval for the average Food expenses using the given sample.

State and check the assumptions for confidence interval:

The data must be a random sample from the large population.
Each observation must be independent of each other.
The population from which the sample is drawn must be normally distributed.

Since the data is a survey sample, we can safely assume that the above conditions are met.

Method Used to Analyze Data:

Find the sample statistic and the confidence interval:

1. Find the mean and the standard deviation of the sample.

2. Find the confidence interval.

Statistical Interpretation:
If multiple samples are taken from the population of the same size, 90% of the time average expenses will lie between the given interval.