Unit 7 Discussion Statistics play an important role in predicting what will happ

Question

Unit 7 Discussion

Statistics play an important role in predicting what will happen in the future based on collecting, reviewing, and analyzing data from the past. There are various ways to analyze the information collected, including mean, median, mode, standard deviation, range, and others.

Statistics in Business

Do some research, from a reliable source, such as the U.S. Department of Labor (not a scholastic or school site or Wikipedia) to find an interesting set of data and present the mean, median, mode, and standard deviation for this data set. In your initial post, fully explain the information and/or make predictions for the future based on your findings. For example, if you are using previous sales for your data set, you might want to predict future sales or suggest wholesale ordering of product for the business to sell.

Explanation / Answer

Answer:

Here, we want to find the some descriptive statistics for the average hourly income in the USA for private sector. Data for the last 12 months is used for the calculation purposes. Data is achieved from the U.S. Department of Labor, Bureau of Labor Statistics. Collected data with some necessary calculations is summarised as below:

Month

Hourly Income (X)

(X - Xbar)^2

Aug-16

$25.74

0.0961

Sep-16

$25.81

0.0576

Oct-16

$25.90

0.0225

Nov-16

$25.91

0.0196

Dec-16

$25.98

0.0049

Jan-17

$26.02

0.0009

Feb-17

$26.10

0.0025

Mar-17

$26.13

0.0064

Apr-17

$26.18

0.0169

May-17

$26.22

0.0289

Jun-17

$26.27

0.0484

Jul-17

$26.36

0.0961

Total

$312.62

0.4008

Average

$26.05

Now, we have to find some descriptive statistics which are given as below:

Mean = total sum / n = 312.62/12 = 26.05

Var = [(X – Xbar)^2/(n – 1)]

Var = 0.4008/(12 – 1)

Var = 0.036436364

SD = sqrt[(X – Xbar)^2/(n – 1)]

SD = sqrt[0.4008/(12 – 1)]

SD = 0.190883115

Maximum = $26.36

Minimum = $25.74

Range = Maximum – minimum = $26.36 - $25.74 = $0.62

Median = $26.06

We predict that the average income per hour for the employees in a private sector is $26.05. It is observed that the maximum income of the employee is $26.33 per hour. It is observed that the minimum income of the employee is $25.74 per hour. The median income or middle most income of the employees in USA in private sector is given as $26.06 per hour. Mode is not applicable for this data because there is no repetition of any observation in the data set.

Month

Hourly Income (X)

(X - Xbar)^2

Aug-16

$25.74

0.0961

Sep-16

$25.81

0.0576

Oct-16

$25.90

0.0225

Nov-16

$25.91

0.0196

Dec-16

$25.98

0.0049

Jan-17

$26.02

0.0009

Feb-17

$26.10

0.0025

Mar-17

$26.13

0.0064

Apr-17

$26.18

0.0169

May-17

$26.22

0.0289

Jun-17

$26.27

0.0484

Jul-17

$26.36

0.0961

Total

$312.62

0.4008

Average

$26.05

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