Scenario: A 28 year old with a bachelors degree. They have no children and is a

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.

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

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.

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 .

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).

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

Explanation / Answer

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

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

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