Statistical Analysis of Household Income and Expenditure Patterns

This report presents a statistical analysis of household income and expenditure patterns, utilizing a dataset that includes income, after-tax income, and various expenditure categories. The analysis employs simple random sampling and focuses on descriptive statistics, including measures of central tendency, dispersion, and skewness for expenditures on alcohol, meals, fuel, and phone. The report also examines the top and bottom 10% of after-tax annual income, the proportion of households owning a house, and the relationship between total expenditure and after-tax income using a scatter plot and correlation coefficient. Furthermore, a contingency table is used to analyze the relationship between gender and education level, with probability computations derived from the table. The findings indicate positive skewness in expenditure distributions, variations in expenditure patterns, and correlations between income and expenditure. The report concludes with a summary of key findings and references relevant literature.