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ECO-4001B Introductory Statistics for Economists
SUMMATIVE COURSEWORK 1
This assignment has been published on Blackboard at 2.45pm on Wednesday 13th February 2019. The work is to be completed and submitted electronically (through BLACKBOARD) by 3pm Thursday 14th February 2019. The work should be carried out INDIVIDUALLY; any detected plagiarism will be penalised. You only need to submit the Word document with your complete workings (you DO NOT need to submit the Excel spreadsheet where you work; copy any graphs or tables from the Excel spreadsheet into your Word file).
The coursework requires you to answer a number of questions with the help of Excel, covering material associated with descriptive statistics. All work and workings (where required) should be typed and presented in the space(s) provided (enlarge the space if required; to type any mathematical formulas, in the Insert menu in Word use the Equation tool). The final answers (excluding these instructions and the question text) should not exceed 1500 words. The maximum number of points you can score on this assignment is 100 points.
Think of this piece of work as preparation for a report you might be asked to write if you were working in the research department of the government. Please define all terms and provide brief and clear interpretations of your results. To receive full marks, you will need to write clearly the appropriate definitions, mathematical formulas where appropriate (e.g. explain how the different statistics are calculated, the first time you present them), you will need to show complete and correct figures and tables and correct interpretations of all results. Please edit your graphs carefully, complete with axis labels and titles and provide figure captions, such that an intelligent reader may be able to understand what is being displayed without looking at the dataset.
Please type your student number in the space below:
Student Number:_________________________________________________________

In this coursework you will perform a descriptive statistical analysis of selected expenditures on public services by local authorities in England (measured in thousand pounds). The data is compiled from the Local Authority Revenue Expenditure and Financing Budget 2017-2018 of the Ministry of Housing, Communities & Local Government.

Within the Assessment and Feedback tab on the Blackboard site for the module you will find
an Excel datafile titled “Local_Authority_Expenditures.xlsx” which contains information as follows:

Spreadsheet “DATA Dictionary”: contains variable definitions and notes on how the variables are coded or measured.

Spreadsheet “Total_accounts”: Individual local authorities, local authority class, population as of 2017, local authority size, total expenditure on: education services, social care (children and adults), public health, housing services, environmental and regulatory services. All expenditures are measured in thousand pounds.

Answer the following:

a)Which type of data are contained in the variables “localauthority”, “lasize” and “totaleducationservices”? Explain. (4.5 points)

b)Describe the 50th local authority. (2.5 points)

c)Why do shire districts typically display 0 total education expenditure (you will need to search the web to understand the differences between local authorities for this one)? How much do Norfolk, Suffolk and Cambridgeshire county councils spend on education? (3 points)

d)How many local authorities are classed as small? What percentage of local authorities are classes as large? Display the frequencies in using in a table and graph. (5 points)

e)Explain what services you expect to be allocated a bigger budget. Calculate and display in a table the average expenditure for each of the six different services. What services do local authorities spend most and least for, on average? Is that consistent with your expectations? (10 points)

f)Display a descriptive statistics table for the variable “totaleducationservices” and explain the main summary statistics (mean, median, mode, variance, and standard deviation, range, minimum and maximum value, as well as skewness). Discuss the distribution of expenditures for education services. (10 points)

g)Plesent a table of average expenditure for childrens’ social care disaggregated by local authority class and size. Which type of local authority has the highest children’s social care expenditure? (5p)

h)Present a table of the standard deviation of expenditure on education services within groups disaggregated by local authority class and size. Which type of local authority has the highest variation in education expenditure? (5p)

i)Create a histogram of the expenditure for housing services based on Sturge’s rule, showing your complete workings (including the calculation of the number of bins, the statistics used for that calculation and the bin frequency table; choose the lowest integer near the number of bins Sturge’s rule gives you). What size do the bins need to be (rounded to the next integer)? Describe the distribution in terms of the relative frequency of the different class intervals, typical values, spread and skewness. (12.5 points)

j)Use an appropriate rule to calculate what proportion of the housing service expenditure distribution should be within 3 standard deviations from the mean. Is the data consistent with your calculation? (5 points)

k)Which local authorities are located at the 25th and 75th percentiles in the distribution of public health expenditure? Calculate and interpret the interquartile range for this variable. (7.5 points)

l)Sort the data by population. How is the variable local authority size related to the variable population in 2017 (think about the minimum and maximum value of population in small, medium and large local authorities)? (5 points)

m)Create a new variable “Total expenditure per capita”, by using all the different expenditure categories and the population variable. Explain your steps for creating the variable. Create and interpret a scatterplot of Total expenditure per capita and the local authority’s population size. (10 points)

n)Calculate and compare the mean and standard deviation of Total expenditure per capita across small, medium and large local authorities. (10 points)

o)Display a bar chart of total expenditure per capita in all 32 boroughs of London (do not include the City of London). Which borough spends the most and which borough spends the least on public services? (5 points)

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