Data Summary and Discussion

The information presented shows the follow charged on realisation taunts by planetary houses of a given surface and income. This information shows that while the amount spent by households varies depending on the coat and income, the combination of both might likewise gain an important bearing on the amount of that households debt. The debt track down for the holy data gear up of 50 households is $1,864 to $5,678 per year, while the incomes in the set range from $21,000 to $67,000 per year. The households sizes in this data set range from one (1) to control panelinal (7). When apiece variable is takensingly, one finds that each does to a monumental extend prophesy the amount of debt that the household carries. What is specific ally shown in this data is that households tend to have a higher amount of debt depending on the tally of persons who live in the house, as it largest households mostly carry a debt amount that lies on the higher end of the spectrum. For exa mple, the average debt for the deuce-ace s however-person households lies at $4,911, which is only(prenominal) about seven hundred dollars below the highest debt amount of $5,678. The data also shows that the average debt for the five one-woman(prenominal) households is approximately $2,781.However, what the data also shows is that even though debt rises as the household size rises, it does so at a decreasing rate. The fact that the average debt for one-person households is significantly higher than the humiliate end of the range demonstrates that the low end might embody an impudent amount, and indeed it does. This is the debt carried by a two-person household. A best comparison of the one-person household average debt could be made with the calculated debt per head for the entire data set. The total number of persons in all households is 171, and the total debt for all households is $198,203.The average debt per capita for this group of persons is about $1,159. This, compar gond with the average debt for the one-person households, shows that the debt for the one-person households does represent a disproportionately high size of double as lots as the boilersuit per capita debt. This might be explained by the fact that the dictated costs for households generally remain relatively the same regardless of how galore(postnominal) persons may live in the house. separate factors that bear on this are extraneous, such as the spending patterns and financial awareness of the persons in each household. However, an early(a) major factor to consider in predicting household debt is the annual income of the persons within each house.Which is a Better Predictor household size or income?However, further analysis shows that even household, by itself, does not predict the amount of debt very well. In fact, the data points toward the fact that household size predicts the annual credit table charges better than household income. Looking natural covering at the introd uctory example, one sees a household that earns $26,000 producing debt comparable to or so of the higher-end earners.Part of this debt size has to be attributed to the fact that the household earning such a small income in comparison to other household is faced with the argufy of supporting seven persons. Another household earning $23,000 supports six persons and shows credit card charges of $4,127 per year. Other households of comparable earnings ($21,000 and $27,000) show smaller credit card charges of $2,448 and $2,477 respectively, and this can be attributed to their smaller household sizes.Combination of Household coat and EarningsThe income range for the data set has already been stated as $21,000 to $67,000. The total income for this group is $2,174,000 and the average income is $43,480. The average debt for each household is $3,964 which locomote approximately in the middle of the $1,864 to $5,678 range. However, what one notices is that though the average debt for the threesome 7-person households is shown to be $4,911, the highest debt in that segment goes to the household with the highest income.Therefore, the $5,301 debt goes to the household that earns $55,000 per year, while the last debt of $4,603 goes to the household that earns only $26,000 per year. This demonstrates that the combination of household size and household income is an overall better predictor of credit card charges that any of those variables alone. According to this, a household made up of three persons and earning $40,000 should show a credit card charge within the median range of about $3,800 $4,100. This would be expected to be comparable to any other household of three persons, yet slightly below those households of three that have higher earnings.Other entropy Necessary to Make Accurate PredictionsOther information concerning these households loans, mortgages, and locality locations would also be requested of the client. According to the discussion above, though, it would appear that condescension the fact that household size predicts the annual credit card charges better than household income, other factors also affect the size of credit card debt. What one notes is that most of the low-earning households do still show a disproportionately higher amount of debt than their counterparts of high-earning households with similar household sizes. Households that, for example earn twice as much as another do not generally show twice as much debt in this data set.neither is this so for households that have twice as many persons. One contributor to this is the existence of fixed costs, as mentioned above. However, this does not account for all the discrepancies. Therefore, other factors that might contribute to credit card charges take on the amount of previous debt (such as university tuition loans, mortgages, etc) that each household has incurred. They may also include the households attitude toward its finances and toward debt in general. Othe r factors subscribe to the cost of living within the geographical area of the particular household and the general lifestyle to which the household is accustomed.Work CitedProfessors Name. Data Sheet. Name of Class. City University, 2007.