BA 501 Statistics, Individual Assignment 2

Instructions: All the data you need is provided in the Excel file Assignment2. Write your answers in the spaces
provided and submit your document in Word of PDF format. Do not submit Excel files.

1) Solve Problem 11 in Chapter 3. I have already done part (a) for you. Answer parts b and c.

Answer to part b:
For households that report a second income, first income tends to be lesser on average than those that
do not. This is evident in lower mean for households that report a second income ($43,285 against
$44,776), as well as a lower median ($39,602 against $41,628). Furthermore, households that report a
second income have a greater variation in first income, as suggested by the higher standard deviation
($16,077 against $15,329).

Answer to part c:
For households that report a second income, monthly payments tend to be lesser on average than those
that do not. This is evident in lower mean for monthly payments for households that report a second
income ($963 against $ 1012), as well as a lower median ($931 against $ 965). Furthermore,
households that report a second income have a greater variation in monthly payments, as suggested by
the higher standard deviation ($364 against $ 331).

For households that report a second income, debt value tends to be higher on average than those that
do not. This is evident in higher mean for debt for households that report a second income ($4432
against $ 4070), as well as a higher median ($4268 against $ 4262). Furthermore, households that
report a second income have a greater variation in debt values, as suggested by the higher standard
deviation ($1789 against $1555).

2) Solve Problem 22 in Chapter 3. I have already done part (a) for you. Answer parts b and c.

Answer to part b:
Based on the data, there appears to be a low correlation between Budget and US and Worldwide gross
(0.318 and 0.369). This would suggest that the success of a movie is not entirely dependent on its
budget, and rather may depend on other factors. There is also a high correlation between US gross and
Worldwide gross (0.928). This suggests that movies that perform well in the US also perform well
worldwide, and possibly, that the US market accounts for a major proportion of the worldwide market.

Answer to part c:
The scatterplot of Worldwide gross (Y-axis) against US gross shows a strong positive correlation. This
suggests that the observations for Worldwide and US gross generally move in the same direction.
Additionally, there is a stronger correlation between the two variables for movies with low gross
volumes compared to high grossing movies, which show a weaker correlation.

The scatterplot of US gross (Y-axis) against budget shows no/weak correlations, and the observations
appear to be randomly scattered.