The file P02_35.xlsx contains data from a survey of 500 randomly selected households. For this problem, consider this data set a simple random sample from all possible households, where the number of households in the population is well over 1,000,000.
a. Create a new variable, Total Income that is the sum of First Income and Second Income.
b. For each of the four variables Total Income, Monthly Payment, Utilities, and Debt, find the sample mean. If each of these is used as an estimate from the corresponding (unknown) population mean, is there any reason to believe that they either underestimate or overestimate the corresponding population means? Why or why not?
c. What are the (approximate) standard errors of the estimates in part b? How can you interpret these standard errors? Be as specific as possible. Is the finite population correction required? Why or why not?
d. Is it likely that the estimate of Total Income in part b is accurate to within $1500? Why or why not?