USE DESCRIPTIVE STATS A report shows that Covid-19 reduced household expenditure in Europe by 8% in 2020. Elsewhere, consumer spending also dropped significantly in 2020, with 4% seen in the United States, and 17% reported in China (Broom, 2021). After reading the report, Mr. Goh, a student of Singapore University of Social Sciences, was interested to find out how Covid-19 has affected the household spending in Singapore. Surprisingly, he found news saying that consumer spending among Singapore residents was resilient and at a similar level to 2019 (Choo, 2021). In order to have a better understanding of the impact of Covid-19 on household spending of Singapore residents, Mr. Goh decided to conduct a survey. He got a random sample of 32 students from Singapore University of Social Sciences, and collected data on their average monthly household expenditure in 2019 and 2020. Based on his own experience, he hypothesised that the household expenditure of Singapore residents in 2020 is lower than that in 2019. (a) Describe 99% confidence interval of the mean monthly household expenditure in 2019 and 2020, respectively. Interpret and discuss whether Mr. Goh can conclude that the household expenditure of Singapore residents in 2020 is lower than that in 2019.. //Show mathematical formula (b) Apply an appropriate hypothesis test to determine if the household expenditure of Singapore residents in 2020 is lower than that in 2019, at the significance level of 1%. Examine the assumptions required to perform the test. Are these assumptions reasonable? //Show mathematical formula (c) Criticise the analysis done by Mr. Goh by identifying three (3) concerns. If you have a free hand to study this research question starting from data collection to analysis, explain how you would conduct the project.
USE DESCRIPTIVE STATS
A report shows that Covid-19 reduced household expenditure in Europe by 8% in 2020. Elsewhere, consumer spending also dropped significantly in 2020, with 4% seen in the United States, and 17% reported in China (Broom, 2021).
After reading the report, Mr. Goh, a student of Singapore University of Social Sciences, was interested to find out how Covid-19 has affected the household spending in Singapore. Surprisingly, he found news saying that consumer spending among Singapore residents was resilient and at a similar level to 2019 (Choo, 2021).
In order to have a better understanding of the impact of Covid-19 on household spending of Singapore residents, Mr. Goh decided to conduct a survey. He got a random sample of 32 students from Singapore University of Social Sciences, and collected data on their average monthly household expenditure in 2019 and 2020. Based on his own experience, he hypothesised that the household expenditure of Singapore residents in 2020 is lower than that in 2019.
(a) Describe 99% confidence interval of the mean monthly household expenditure in 2019 and 2020, respectively. Interpret and discuss whether Mr. Goh can conclude that the household expenditure of Singapore residents in 2020 is lower than that in 2019.. //Show mathematical formula
(b) Apply an appropriate hypothesis test to determine if the household expenditure of Singapore residents in 2020 is lower than that in 2019, at the significance level of 1%. Examine the assumptions required to perform the test. Are these assumptions reasonable? //Show mathematical formula
(c) Criticise the analysis done by Mr. Goh by identifying three (3) concerns. If you have a free hand to study this research question starting from data collection to analysis, explain how you would conduct the project.
![Average Monthly Household Expenditure (SGS)
Household No.
Year 2019 Year 2020
3100
3720
8250
5940
5430
5919
5900
5723
3900
6300
4800
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
7400
9210
5950
4390
5520
5810
6360
6490
4290
5550
8280
7360
7810
6745
5630
6530
4570
5790
6390
5210
3670
4420
4690
5630
5910
3198
7560
5760
6734
8197
6962
3249
3919
4648
5724
7528
3947
4329
8528
6330
6170
7082
4335
4571
5301
6832
6710
4741
2789
4243
5065
5461
4373](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa38b1750-4836-4d47-bfc9-b05e81f0daae%2Fd830cf1f-b810-4179-984a-7cef1e10282f%2F8qq6hz_processed.jpeg&w=3840&q=75)
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