Assignment #1: Descriptive Statistics Data Analysis

Before conducting any statistical analyses, researchers develop a plan for how they will obtain and analyze data to answer their research question. The purpose of this assignment is to provide experience working with and executing a descriptive statistics analysis plan using real world data to answer a practical question.

In the first assignment you will execute the descriptive analysis plan using the provided data to create tables and graphs to focus your effort in determining a point estimate of the parameter in question. The second assignment, address Inferential Statistics, expanding the analysis of first assignment to include a confidence interval to the point estimate obtained in Assignment 1.

Assignment Plan

Identify 7 Subjects with similar attributes of your client and determine their average expenditures.Upon request and instructor approval you may use a profile of your choice.

Understanding the task to be addressed:

You are a Financial Advisor and have been asked to perform the following task:

Using provided real world data determine the budgetary annual expenditure your client should anticipate, assuming your client has the following social/economic family profile.

Profile:

Family Income$97,000.00

Marital StatusSingle

Family SizeFour (4)

AgeFifty-Three (53)

Project Approach

Identify 7 Subjects with attributes similar too your clients and determine their average expenditures. The average expenditures will be the point estimate

Similar attributes: salary, marital status, family size and age

Step #1: Review the provided random sample data set.

The data provided is a subsample from the US Department of Labor's Consumer Expenditure Surveys (CE) and provides information about the composition of households and their annual expenditures (https://www.bls.gov/cex/). Detailed information on the sample and variables is included with the data set file; please carefully review this information to familiarize yourself with the data.For your convenience the data set is also provided in an Excel spreadsheet.

Note: This data set will be used for both written assignments.

Step #2: Complete the following Table

Variable

Categorize*

Minimum

Maximum

Mean

Shape **

Outliers***

Income

Age

Family Size

Annual Expenditures

* Abbreviations: Qual. for Qualitative data (categorical), Quant for Quantitative data

**Left, Right, Symmetrical (Sym.)

***Identify outliers by Id number or 0

Step 3:Graphs (Dot plot, Histogram and a Box and Whisker plot) for the following variables

Income vs Marital Status

Annual Expenditures vs Income

Describe at least one important characteristic observed from each group of graphs.

Recommend-lock5stat.com-Statkey for graphing-and MS Snipping tool for pasting .

Step 4Based upon the data provided:Provide 7 or more subjects that best represent your client's social/economic lifestyle.If one or more of the 7 recommended subjects is a 'push', a possible outlier, identify the outlier or outliers by placing a * in the Outlier column.

Id # of Subject Chosen

Marital Status

Income

Family size

Age

Outlier

Step 5Explain in bullet form, in a clear and orderly procedure: the method used (in step format) for determining your recommended list of subjects.

Step 6Point Estimate Recommendation:

Based upon your analysis what do you believe the Annual Expenditures of your Client will be.