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This project will focus on analysis of a subset of data from the 2015 Household Component of the Medical Expenditure Panel Survey (MEPS). The data
This project will focus on analysis of a subset of data from the 2015 Household Component of the Medical Expenditure Panel Survey (MEPS). The data are available on Canvas. Let us assume that the data comprise a random sample from the population of all US adults. (1) Based upon the ages collected in this data, do the data suggest that age is normally distributed in the population? Provide both graphical and numerical evidence for your answer. (2) Based upon the ages collected in this data, what are your best estimates for the mean and standard deviation of age in the population? (3) Compute a 95% confidence interval for the mean age in the population. Give an interpretation of this confidence interval. (4) Repeat questions (1) (3) for family income. (5) Repeat questions (1) (3) for mental health. (6) A colleague of yours recalls from his statistics class that 95% confidence intervals require data that come from a normal distribution, so he is concerned about the validity of the confidence intervals you computed in questions (3) - (5). Explain to your colleague whether his concern is warranted or not. (7) You are reading your favorite news website, which states a study found that the average US family had an income of $65,000. Based upon the values you computed in question (4), do you feel there is a conflict between your results and the study you read about on the internet? If so, what might be the source of this conflict? (8) Discuss the practical interpretability of the confidence interval you computed in question (5). Does it make sense to talk about a population mean with this variable
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