Household Income Case Study

            Instructions: Use the information presented in this packet for this assignment. To complete this assignment, read and understand the problem and decide the right descriptive and inferential statistical methods needed to solve the problem.  Plan, calculate, analyze, and interpret all statistical procedures relevant to the data presented. Write and justify your statistical strategies and procedures.  Write down the statistical analysis and your findings and conclusions.  Your report can be presented in either a Word or an Excel format.  Since it is an exam, you are supposed to do it on your own.




            The intent of this case is to analyze household income in two subdivisions.  Each division has 50 households total.   The head of household age and occupation are also recorded.   The county manager is interested in finding out household income information about the two subdivisions in total and separate.  Also of interest is whether any significant differences existed between the two subdivisions, and whether age or occupation affect the income level. 


            In addition, the county manager is also interested in the opinions of the residents of the two subdivisions regarding the location of a new high school.  Households were given a short questionnaire asking their views.  The following questions made up this questionnaire.

 Build the new high school in the existing park.Expand the elementary school ground to include the new high school.Build a new elementary school and a new high school both near the county land near the highway and keep the park as is.Build a new elementary school and a new high school both in the park.Don’t build the new high school.


            The households responded to these questions using the following rating scale.

1.     (1) strongly agree

2.     (2) agree

3.     (3) agree somewhat

4.     (4) disagree

5.     (5) strongly disagree


            The county manager is interested in finding out how each subdivision and household by occupation responded to the survey. Were there any differences in questionnaire response between subdivision and occupation?  Finally, the county manager seeks to see what relationship exists between household income and their responses to the questionnaire.                                                                        


            As county analysts, your responsibility is to examine the data presented in this package, analyze it, and present your findings to the county manager.



Chart of Codes


Data Category

Data Interpretation


Household #


1= west side
2 = east side


1= Accountant, 2 = Engineer, 3= Banker, 4= Nurse, 5= Mechanics, 6 = teacher 7= salesman. 8= retailer, 9= baker 10= service worker, 11= management


Age of head of household


Total household income

Z Score

Household Income standardized


Response to Question 1 of Class Questionnaire


Response to Question 2 of Class Questionnaire


Response to Question 3 of Class Questionnaire


Response to Question 4 of Class Questionnaire


Response to Question 5 of Class Questionnaire


Mean Score on Questionnaire






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