Question 2
(a)
The numerical descriptive statistics and histogram chart for incomes in Boise are listed as followed:
Boise

Inter-quartile Range
21100
Mean
16357.35779
Standard Error
422.032757
Median
13000
Mode
0
Standard Deviation
18826.63484
Sample Variance
354442179.4
Kurtosis
53.46858119
Skewness
4.697357512
Range
316500
Minimum
-8800
Maximum
307700
Sum
32551142
Count
1990
Largest(1)
307700
Smallest(1)
-8800
Confidence Level (95.0%)
827.6726617

And the numerical descriptive statistics and histogram chart for incomes in Des Moines are listed as followed:
Des Moines Inter-quartile Range 24225
Mean
21469.37466
Standard Error
521.8665481
Median
20000
Mode
0
Standard Deviation
19885.78627
Sample Variance
395444495.7
Kurtosis
37.58095891
Skewness
3.590159814
Range
325000
Minimum
-10000
Maximum
315000
Sum
31173532
Count
1452
Largest(1)
315000
Smallest(1)
-10000
Confidence Level (95.0%)
1023.69355

The reason that I chose the histogram to present my data is that it always presents ‘continuous data’ which means the data represents measured quantity and we can take the value in a certain range. However the bar chart is usually to present the numbers into the different categories and the pie chart is to present the each of the individual percentage in the total. In this question, the firm wants to know each of the city’s female income level distribution, so the histogram is more suitable.
(b)
From the descriptive statistics, we can see that the average income between the 18 and 40 years old in Des Moines (mean around $21469) is more than the Boise (mean around $16357), so does the median income level ($20000 compared to $13000) And the mode income level for both cities is zero. However, Des Moines’s standard deviation is also bigger than the Boise one which means that the Boise had the high variation from the average mean, so that it is more risky as based on the confidence level at 95%, opening the shop will lose more money in Des Moines than the Boise because of the market risks (around $1023 versus around $827).
For Boise, it has a long tail to the right as it has a positive skewness (positive distribution). Moreover, it has a higher value of kurtosis, thus it has a narrow peak and fat tails respectively. And its peak range from $1 to $20000.
Similar to Boise, Des Moines also has a long tail to the right because of the skewness (positive distribution). However, it has a lower kurtosis value, thus it has a rounded peak and thinner tails respectively. The rounded peaks are from $1 to $30000.
(c)
Except for mean,