Deliverable 4 - Hypothesis Test Assignment Content

Data

Question 1

1a. Provide a brief overview of the scenario you are given and describe the data set. Our current client is interested in the salary distributions of jobs in the state of Minnesota that range from $30,000 to $200,000 each year. The data set includes listing of the jobs by name and the salary amount in dollars for each position

1b. Describe how you will be analyzing the data set. By using an excel spreadsheet

1c. List all variables in the data set. Define each variable as follows and explain your reasoning. V1 > Job Title > Qualitative because it doesn't consistent of numerical number (data) > level of measure is nominal the data collected is categorical by job title V2 > Salary > Quantitative contains numerical data > Variable is Continuous because it contains decimals > level of measure would be ratio because data was collect on the exact annual incomes of the different job titles > Quantitative or Qualitative? > If the variable is quantitative, is it Discrete or Continuous? > What is the level of measurement? (Nominal, Ordinal, Interval, or Ratio)

Question 2

2. Name and describe each Measure of Center below. Include the advantages and disadvantages of each Measure of Center. Mean is the average of the data set Advantages are most people understand the concept and every data set will have only one mean Disadvantages include it is affected by extreme values and difficult to calculate on large data sets by hand Median is the data value that is directly in the middle of an ordered data set Pro it is not affected by extreme values Con but doesn't contain information on the other values of distribution it is also less worthwhile in statistical test Mode the data amount that occurs the most in the data set Pro it is an actually value of the data set and, is easy to determine. Con Sometimes this is not very informative and there may be more than one mode in a data set Midrange the value midway between the max and minimal value Pro data set value it is easy to calculate and gives you the midpoint Con it is affect by extreme values and it is not always a value in the data set

Question 3

3. Name and describe each Measure of Variation below. Include the advantages and disadvantages of each Measure of Variation. Range is the max value of the data set minus the the minimum value of the data set shows the difference between the two values PRO it is easy to calculate CON it uses only extreme values and is rarely used in statistical computations Variance is the expectation of squared deviation of random variables from its mean, informally how spread out the data is PRO each value in the data set is used in this calculation it is also used to calculate the standards of deviation. CON Values far the mean are given extra weight and are hard to calculate manually Standards of Deviation measure of how much data values deviate away from the mean PRO Each value in the data set is used in the calculation very useful in theoretical work and statistical methods and inference CON Hard to calculate manually and sensitive to extreme data values

Question 4

4. Calculate the Measures of Center and Measures of Variation on the "Data" tab in this document. List each value below and include the following: > Interpret each calculation in context of the scenario. (For example, if the median is larger than the mean, what does it mean? What does the value of standard deviation tell you?) > Include correct units of measurement on each answer. Mean or average salary of the data set is $72,025.31 dollars the formula used was {=average(B2:B365)} Median salary is $67,310 dollars which is the data value that is directly in the middle of the ordered data set the formula used was {= median(B2:B365)} This is right skewed because the mean is greater than the median Mode salary was $59,800, $73,870, $59,630, $58,140, $66,710, $38,120, $79,960, $81,590, $101,500, $58,660 dollars which is the data amount that occurs the most in the data set the formula used was {= MODE.MULT(B2:B365)} (extra) Min Value $32,220 (extra) Max value $194,130 Midrange is $113,175 dollars the value midway between the max value and minimum value of the data set the formula used was {=F20+F19)/2} Range salary is $161,910 dollars which is the max value of the data set minus the the minimum value of the data set formula used was {=(F20-F19) Variance expectation of squared deviation of random variables from its mean, informally how spread out the data is was $520433309.5 squared dollars formula used was {=VAR.S(B2:B365)} Standard Deviation is measure of how much the data values deviated away from the mean the answer is $22,813.00746 dollars the formula used was {=STDEV.S(B2:B365)}