Relationship between Food Expenditure and Take Home Pay in Australia

University
Quantitative Business Analysis
By
You’re Name
Date
Page 1 of 12
 <Your Name> 2018

Part 1
Problem Statement
A researcher wants to investigate the relationship between food expenditure and take home pay
in Australia by conducting a survey on a sample of individuals across the country. We are
required to use information provided about the researcher to answer a series of questions in
statistics.
Solutions
a. The researcher could use an interviewer administered survey either using personal
interview or telephone interview. The reason why the interviewer would opt for the above
method of survey is that it provides data of high quality, and would enable the researcher
to clear any misunderstandings between him and the respondent (Selvanathan,
Selvanathan, and Keller, 2017).
b. The researcher can use stratified random sampling. This method would help him divide
the population elements into various strata such as gender, income bracket, age bracket
and level of education, then select a simple random sample from each strata and
determine its expenditure and understand the relationship between various elements of
strata (Selvanathan, Selvanathan, and Keller, 2017).
c. The kind of issues the researcher would likely face in data collection include
misinterpretation of data, non-response errors and selector errors (Selvanathan,
Selvanathan, and Keller, 2017). Other issues would include financial problems in cases
where travel and human resources would be needed in the case of personal interview.
Page 2 of 12
 <Your Name> 2018

Part 2
Problem Statement
The researcher has collected data from a sample of 150 individuals for the study where for each
individual, the weekly take-home pay and weekly food expenditure were recorded. We are
required to use the dataset and EXCEL to answer a series of questions.
Solutions
a. The researcher arrived at 8 class intervals using the formula:
class interval= Largest Value−Smallest Value
Approximate Class width
For example, in the case of the weekly take-home pay the class interval 8 class intervals
are determined as follows:
class interval=1090−105
125 =7.88 ≅ 8 class intervals
b. The data for drawing the histogram for weekly home pay variable is prepared as below:
Table 1: Frequency Distribution for Weekly-Take-Home Pay
The histogram for weekly home pay variable is as shown below:
Page 3 of 12
 <Your Name> 2018

Figure 1: Histogram for Weekly-Take-Home Pay
The data for drawing of the weekly food expenditure histogram is prepared as below:
Table 2: Frequency Distribution for Food Expenditure
The histogram for the weekly food expenditure is as shown below:
Page 4 of 12
 <Your Name> 2018