Inferential Statistics Analysis and Writeup

Assignment #3: Inferential Statistics Analysis and Writeup
Identifying Information
Student (Full Name):
Class:
Instructor:
Date:
Part A: Inferential Statistics Data Analysis Plan and Computation
Introduction:
The scenario: I am a single head of a household with two children who makes $96,664 and
spends$1,478 on electricity and $18,483 on housing. The variables included are Marital status
Income, Family size, Housing expense, and Electricity
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: ’USD-
housing’
Expenditure Total amount annual
expenditures on Housing
Quantitative
Variable
3:’Electricity
Expense’
Expenditure Total amount of annual
expenditures on Electricity
Quantitative

Data Analysis:
1. Confidence Interval Analysis:
Table 2: Confidence Interval Information and Results
Name of Variable: ‘Housing expenditure’
State the Random Variable and Parameter in Words: The random variable is value that
vary from one person to another in this case it is housing expense. The parameter is the mean
of housing expense that is the random variable.
Confidence interval method including confidence level and rationale for using it: The
confidence interval method is usually at 95%, and it is equivalent to 5% confidence level , it
is used since it provides the chance that the true parameter value is within confidence interval
generated by the method used
State and check the assumptions for confidence interval: With 95% confidence the
population mean is between 18100 and 28500. It is also assumed that the random variable is
continuous in nature
Method Used to Analyze Data: Excel
Find the sample statistic and the confidence interval: The mean housing expense is
$21900.6 and its confidence interval is between 20499.3 and 23301.9
Statistical Interpretation: The mean housing expense for all the individual is within the
interval $20,499.3 and $23301.9. It is also evident that the population parameter is within this
interval.
2. Hypothesis Testing:
Table 3: Two Sample Hypothesis Test Analysis
Research Question: Does married and not married individual spend same amount of money in
electricity?

Two Sample Hypothesis Test that Will Be Used and Rationale for Using It: Two sample
T-test will be used. This is because marital status contained to independent categories and thus
to test the difference in expenditure of the two groups the above named test will be appropriate
State the Random Variable and Parameters in Words: The random variable will be
Electricity expense while the parameter will be T statistic
State Null and Alternative Hypotheses and Level of Significance:
H0: There is no difference in electricity expenditure between married and not married families.
H1: There is no difference in electricity expenditure between married and not married families.
Method Used to Analyze Data: Excel
Find the sample statistic, test statistic, and p-value: the t-test statistic is 2.048407 and p-
value is 0.03
Conclusion Regarding Whether or Not to Reject the Null Hypothesis:
Since the p-value is less than 5% level of significance we reject the null hypothesis that
married and not married spend same amount of money on electricity bills
Part B: Results and write up
Confidence Interval Analysis:
The results obtained revealed that average amount of household income spend on housing is
between 20499.3 and 23301.9. It means that the population average amount of spend on housing
lies within the interval.
Two Sample Hypothesis Test Analysis:
The two sample T-test statistics output generated we use to test the following hypothesis;
H0: There is no difference in electricity expenditure between married and not married families.