Inferential Statistics Assignment - Analysis of Annual Spending on Food by Consumers in the United States

Running head: INFERENTIAL STATISTICS ASSIGNMENT
INFERENTIAL STATISTICS ASSIGNMENT
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1INFERENTIAL STATISTICS ASSIGNMENT
Table of Contents
Part 1 - Preliminary Analysis...........................................................................................................2
Part 2 - Descriptive Statistics...........................................................................................................2
Part 3 - Inferential Statistics............................................................................................................6
Part 4 - Conclusion and Recommendations.....................................................................................9
References......................................................................................................................................11

2INFERENTIAL STATISTICS ASSIGNMENT
Part 1 - Preliminary Analysis
The report addresses the annual spending on food by consumers in the United States. The
key research objectives are to determine whether the average annual expenditure on food for a
household in Midwestern region of the United States is greater than $8,000 USD or not.
Furthermore it looks to address whether the annual average household spending on food in a
typical household from a metro area differs from one which is from those which are outside
metro area. Also it investigates whether any difference exists in terms of annual expenditure on
food, the household income per year and the non-mortgage housing debts between the four
regions of the United States.
The data analysis is based on a sample of size 200. The dataset consists of observations
on 200 households across the United States. It had five attributes, namely Annual Household
expenditure in USD, Annual Household income in USD, Annual non-Mortgage debt, which are
all quantitative continuous variables; the region where the household is from which is a
categorical variable with 4 levels, namely, northeast(NE or 1), Midwest(MW or 2), south(S or 3)
and west(W or 4); and finally the variable location which is also another categorical variable
with the levels marking whether the household is from a Metro area(1) or from outside metro
areas(2).
The analyses of the data to meet the requirements of the objectives that have been laid
down has been done using statistical techniques of descriptive statistics, hypothesis testing and
ANOVA analysis using Microsoft Excel.
Part 2 - Descriptive Statistics

3INFERENTIAL STATISTICS ASSIGNMENT
The data was found to not have any outlier or any missing data..The average annual food
spending was found to be 8966 USD with median value being 8932 USD. The standard deviation
was found to be 3125.007 USD and the coefficient of variation was found to be 2.869. The
minimum observed annual food expenditure of a household was found to be 2587 USD and the
maximum observed annual food expenditure was found to be 17740 USD. 25% of the observed
annual food spending of households in the sample or the first quartile value was found to be less
than equal to 6933.75 USD whereas 75% of the observed annual food spending of households in
the sample or the third quartile value was found to be less than 10950 USD. The mode of the
values was computed from the grouped frequency distribution of the annual household
expenditure on food and found to be equal to 9221.146 USD (Siegel, 2016) . The following table
give the grouped frequency distribution of annual food spending. Figure 1 gives the histogram of
the annual food spending of the households.
Row Labels Count of Annual Food Spending ($)
2587-4586 21
4587-6586 23
6587-8586 44
8587-10586 57
10587-12586 29
12587-14586 17
14587-16586 8
16587-18586 1
Grand Total 200
Table 1