In the first assignment (Assignment #1: Descriptive Statistics Analysis Data Plan), you developed a scenario about annual household expenditures and a plan for analyzing the data using descriptive statistic methods.: Expert Solutions for Success

STAT200 - Assignment #2: Descriptive Statistics Analysis and Writeup

Introduction:

The scenario selected for the analysis was that of a 35-year-old unmarried female with three children, with annual household income of $97469, has a family size of 4, annual expenditures of $54929, and spends $6900 on food, $18514 on housing, and $145 on transportation.

Table 1. Variables Selected for the Analysis

Data Set Description and Method Used for Analysis:

The family size selected for analysis was that of a 35-year-old unmarried female with three children, with annual household income of $97469, has annual expenditures of $54929, and spends $6900 on food. The information will be used in the analysis of the family’s annual expenditures and income to determine some measures of central tendency and dispersion.

 Results:

 Variable 1: Income

 Numerical Summary.

Table 2. Descriptive Analysis for Variable 1

Graph and/or Table: Histogram of Income

Description of Findings.

The mean income of the selected households is $96680.5 and the standard deviation is $6291.076.

From the histogram shown above, we can conclude that the families whose annual income is between $95000 and $100000 have the highest number. We can also see that the number of households whose income is more than $100000 has gradually decreased as shown in the histogram above.

Variable 2: MaritalStatus

 Numerical Summary.

Table 3. Descriptive Analysis for Variable 2

Pie Chart

Description of Findings.

The number of households whose head is married is equal to the number of households whose head is unmarried. Therefore, we cannot identify the mode of the data set. From the pie chart drawn above, we can also see that the percentage of households whose head is married equals to the number of households whose head is unmarried.

Variable 3: AgeHeadHousehold

Numerical Summary.

Table 4. Descriptive Analysis for Variable 3

Graph and/or Table.

Description of Findings.

The Median age of the head of the households is 48 and the standard deviation is 7.304856. From the histogram shown above, we can conclude that most of the heads of the households had a higher age bracket; more than 35 year of age. It is only one household whose head had a age less than 35 year old.

 Variable 4: AnnualExpenditures

 Numerical Summary.

Table 5. Descriptive Analysis for Variable 4

Histogram.

 Description of Findings.

The median annual expenditure of the selected households is $64339.5 and the Standard deviation is $11592.04. From the histogram shown above, we can see that the households whose annual expenditure lies between $55000 and $60000 had the highest number. There was no any single household that had an annual expenditure between more than $60000 and less than $75000.

 Variable 5: Food

 Numerical Summary.

Table 6. Descriptive Analysis for Variable 5

Histogram

Description of Findings.

The median of the expenses that the households spend on food annually is $8052 and the Standard deviation is $1778.842. from the histogram above, nearly half of the selected households spends less than $9000 on food annually. The number of households who spends more than $10000 on food annually was low compared to those who spend $10000 or less annually.

Discussion and Conclusion.

Income

This variable represents what the household earns annually in USD and is used to determine the living standards of the family. A family whose income is high is expected to spend more than a family whose annual income is low.

Marital status

This variable describes the marital status of the head of the households. It gives information about whether the head is married or unmarried. It is used in the analysis to determine the number of households from the selected data set have their head married and the number of households whose heads is unmarried.

Age of the Household Head

This variable tells more about the age of the family head and is used in the analysis to determine the number of households whose heads are of older age and which ones are headed by a young person.

Annual Expenditures

This variable gives more information about the total annual expenditure of the household and is used to determine of the family is spending more than the annual income or it is spending less. From the analysis done, the most of the families are spending less than their annual income which is a manageable level. But the annual expenditure needs to be reduced in all the households so as to save more.

Food

This variable gives information about the annual expenditure on food by the households. It gives information about what the families are spending on food. From the analysis done, most of the families are spending much on food than necessary. This can be solved by reducing the foodstuffs they buy per year by removing the commodities that are not compulsory from their shopping lists.