Quantitative Techniques

RAJVEER SINGH BHATIA

RIMJHIM KHANDELWAL
THE TWO DATA SET WE HAVE TAKEN ARE AGE AND
INCOME OF ASIANS ONLY WHO ARE BELOW POVERTY
LINE POPULATION IN USA.
Descriptive statistics 

 Descriptive statistics summarize and organize characteristics of a data set.

A data set is a collection of responses or observations from a 
sample or entire population.
 There are 3 main types of descriptive statistics:
• The distribution concerns the frequency of each value.
• The central tendency concerns the averages of the values.
• The variability or dispersion concerns how spread out the values are.
MEAN
 The arithmetic mean of a given data is the sum of all observations divided by
the number of observations.

VALUE
mean of age 44.5 mean of income 1164.83

INTERPRETATION
 Mean and median of age are the same because the set consists of evenly
spaced numbers.
 MEDIAN
 The median of a distribution with a discrete random variable depends on whether the
number of terms in the distribution is even or odd.

VALUES
median of age 44.5 median of income 1354

INTERPRETATION
 There are 6 values so the median {n/2th observation + (n/2 + 1)th observation} /2.
GRAPH

MEAN AND MEDIAN OF AGE

MEAN AND MEDIAN OF INCOME
1400.00
50

45 1350.00

40
1300.00
35

30 1250.00

25
1200.00
20

15 1150.00

10
1100.00
5
1050.00
0 1 2
1 2
 MODE
 The mode is the value that is repeatedly occurring in a given set.

VALUES
mode of age #N/A mode of income #N/A

INTERPRETATION
 Mode of both age and income is not defined because there are no repeats in
the data.
MAXIMUM
 The greatest amount, extent, or intensity possible.

VALUES
Maximum 69.5 Maximum 1533

MINIMUM
 the least or smallest amount or quantity possible.

VALUES

Minimum 19.5 Minimum 334

RANGE
 The range is the difference between the largest and smallest numbers. The
midrange is the average of the largest and smallest number

VALUES
Range 50 Range 1199
GRAPH

DESCRIPTIVE STATISTICS OF AGE DESCRIPTIVE STATITICS OF INCOME

Maximum Maximum

Minimum Minimum

Range Range

variance of age variance of age

standard deviation of age standard deviation of income

mode of age mode of income

median of age median of income

mean of age mean of income

0 50 100 150 200 250 300 350 400 0.00 50000.00 100000.00 150000.00 200000.00 250000.00
 KURTOSIS
 Kurtosis is a statistical measure used to describe the degree to which scores
cluster in the tails or the peak of a frequency distribution. The peak is the
tallest part of the distribution, and the tails are the ends of the distribution.

VALUES
Kurtosis -1.2 Kurtosis 2.633083542

INTERPRETATION
 Kurtosis of age is less than zero so the distribution is light tails (platykurtic) and that of
income is more than 1 so the distribution has heavier tails (mesokurtic).
SKEWNESS
 Skewness is the measure of the asymmetry of an ideally symmetric probability
distribution

VALUES
Skewness -1.33227E-16 Skewness -1.676048629

INTERPRETATION
 Both age and income sets are negatively skewed. Also the data is highly
skewed as its less than -1.(not symmetrical)
 STANDARD DEVIATION
 A quantity expressing by how much the members of a group differ from the
mean value for the group.

VALUES
standard deviation of age 18.71 standard deviation of income 446.262

INTERPRETATION
 Standard deviation is a large number because the observed values vary widely
around the mean.
 VARIANCE
 Variance tells you how far a data set is spread out, but it is an abstract
number that really is only useful for calculating the Standard Deviation.

VALUES
variance of age 350 variance of age 199149.37

INTERPRETATION
 The variance is also large which states that the numbers in the set are far
from the mean and far from each other.
CORRELATION
 Correlation is a statistical measure that expresses the extent to which two
variables are linearly related (meaning they change together at a constant
rate).

VALUES
correlation 0.416467584

INTERPRETATION
 As we can see that the correlation is approximately 0.4 which states that there is a
positive relation but the correlation is stated as weak. We can infer from this that its
not mandatory that with increasing age the income will increase at the same rate.
REGRESSION
 Regression is a statistical method used in finance, investing, and other
disciplines that attempts to determine the strength and character of the
relationship between one dependent variable (usually denoted by Y) and a
series of other variables (known as independent variables).

VALUES
regression 0.173445249
p-value 0.23454046
regression y = 0.0611x +
equation 0.1124

INTERPRETATION
 It shows low r square value and high p value.
GRAPH

REGRESSION AND CORRELATION REGRESSION

0.45 0.25

0.4 f(x) = 0.06109521130691 x + 0.11235003738618

0.2
0.35

0.3
0.15
0.25

0.2
0.1
0.15

0.1
0.05

0.05

0 0
0.8 1 1.2 1.4 1.6 1.8 2 2.2 1 2
THANKYOU