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STATISTICS
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Statistics Concepts and Descriptive Measures
Jesse Lee
Course: QNT/561
Due Date: January 3
rd
, 2020
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Mean / Median
The mean (average) annual food spending for these households is \$8,966.07 and the
median is \$8,932.00. The average household income is \$55,552.39 and the median is
\$54,957.47. The average non-mortgage household debt is \$15,604.16 and the median is
\$16,100.25. The median isn’t affected by extreme values (Black, 2016), and the averages are
very close to the means in all of these categories, therefore there are no extreme outliers and the
data is approximately normally distributed.
Standard Deviation / Range / Interpretation
The standard deviation shows us the approximate percentage of values within a number
of standard deviations from the average (Black, 2016). The standard deviation for annual food
spending for these households is \$3,125.01, and the range, being the distance between the
highest and lowest numbers is \$15,153.00. Because the average spending for these households is
\$8,966.07, 68% of annual food spending for these households is between \$5,841.06 and
12,091.07.
The standard deviation for annual income for these households is \$14,661, and the range
is \$74,485.59. Because the average annual income for these households is \$55,552.39, 68% of
the annual income is between \$40,891.03 and \$70,213.75.
The standard deviation for non-mortgage household debt is \$8,583.54 and the range is
\$36,373.94. The reason for the range is because some of the households have zero non-mortgage
debt. Because the average non-mortgage debt is \$15,604.16, 68% of these have between
\$7,020.62 and \$24,178.70 in non-mortgage debt.
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References:
Black, K. Business Statistics: For Contemporary Decision Making. [University of Phoenix].