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Analysis of A Household Survey
Analysis of A Household Survey
of a Household Survey1
Five hundred households are randomly selected from a US city and the following information was
collected from them.
Household No. Identifier
Family Size Number of family members
Location (within the city) 1=SW sector, 2=NW sector, 3=NE sector, 4=SE sector.
Ownership 0= rent home (house/apartment) , 1= own home.
First Income Annual income of first (major) household wage earner
Other Income Annual income of the other wage earner(s) in household, if there is one
Monthly Payment Monthly home mortgage or rent payment
Utilities Average monthly expenditure on utilities
Debt Total indebtedness (excluding home mortgage)
Satisfaction with neighborhood (in rating as well as Likert scale)
Naturally the survey was conducted to find answers to some important questions. What could that be?
Identify the type for each of the metrics/variables. Is there any additional metric that can be computed
from the given ones that can be useful? Do you need to make some (reasonable) assumptions?
Identify different parameters of interest.
Formulate the operative questions in statistical framework and terminology.
Conduct appropriate statistical analysis and inference to address the questions.
Some of these questions can be answered from inference about parameter of a single metric – but many
more interesting ones can be done by examining details from multiple metrics. Pivot‐tables can be used
to compute necessary summary statistics.
A sample list of questions that could be of interest are given below. Find others. Use Pivot‐tables to
calculate necessary summary statistics for each and conduct necessary statistical analysis to answer at the
appropriate conclusions.
1
Case note is prepared by Shubhabrata Das, Indian Institute of Management Bangalore
• Estimate the % of HH with ‘small’ family size. Take ‘small’ as family size 3 or less
• Estimate the Average family size – overall and by location.
• Estimate % of HHs with more than one income
• Estimate the average 1st income, average 2nd income (by region)
• Estimate the Average cost of accommodation/rental/mortgage ‐ by region, family size,
• Estimate the average utility bill, debt of all/rental/mortgage, by region, family size,
• Estimate the proportion of HH who are satisfied/extremely satisfied with the neighborhood ===
among all/rental/mortgage – by region – single‐income/ multiple‐income HH’s,
• Find 95% confidence interval estimate of the difference in the average mortgage payment and
rental payment in Region 4 of this city.
• Is there significant difference in proportion of multiple income households across the regions?
Between Region1‐2 combined and Region3‐4 combined?
• Does the average per capita income vary significantly across the regions? Does Region 2 have a
higher per capita income than Region 1, on average?
• Is there significant evidence to conclude that the mortgage payment in this city is higher than the
rental payment by more than 100$, on average?