Analysis of Household Data - Desklib

Running Head: ANALYSIS OF HOUSEHOLD DATA
Analysis of Household Data
Name of the Student
Name of the University
Author Note

1ANALYSIS OF HOUSEHOLD DATA
Table of Contents
Task 1...............................................................................................................................................2
Task 2...............................................................................................................................................5
Task 3...............................................................................................................................................7
Task 4...............................................................................................................................................9

2ANALYSIS OF HOUSEHOLD DATA
Task 1
(a) From the dataset of household expenditures, a random sample of 200 households
has been collected by the method of simple random sampling. In simple random
sampling, the sampling units are selected randomly and the probability of each unit to be
selected is equal.
The best method of sampling in this case is the simple random sampling as with
the help of this technique, sampling can be done when very little information about the
population is available. Classification errors cannot be committed in this type of
sampling. The whole population can be represented by simple random sampling and the
technique is bias free. Data analysis becomes easier with simple random sampling. The
sampling technique is very simple and can be used very easily. Assessment of sample
errors becomes easier with the help of this method.
(b) The table of descriptive statistics and box and whisker plot are given in the table
and figure below:

3ANALYSIS OF HOUSEHOLD DATA
Alcohol Meals Fuel Phone
0
500
1000
1500
2000
2500
3000
Box and Whisker Plot
Annual Expenditure
Figure 1: Box and Whisker Plot of Annual Expenditures of Alcohol, Meals, Fuel and
Phone
(c) As a measure of variation, the standard deviation of the variables has been
considered. It has been observed that the standard deviation is highest in case of alcohol
consumption (2093.185). This indicates that the expenditure on alcohol consumption
varies a lot between families. The second highest standard deviation is experienced by
phones (1755.425) followed by fuels (1665.23) and finally meals (1577.824). The
expenditure for meals is the least variable. The standard deviation is a measure which
measures the distance of the values from the mean of the variable. Thus, this measure
indicates whether the values are close to the mean or away from the mean. Hence, this is
the best measure of variability.
(d) In figure 1 it can be seen that the variability of annual expenditures is highest in
alcohol consumption and least in consumption of meals. It can also be seen that the
lowest annual expenditure on alcohol is zero. Thus, some families do not consume
alcohol and some other consume a very high amount of alcohol or spend a very high