Events repeat themselves, such as going to work, producing a widget from machine X, selling widgets, etc. In the events there are outcomes that can be quantified or measured; e.g. the time it takes to drive to work, defective widgets, number of widgets sold each month. But these outcomes are not the same. The time it takes to drive to work can vary each day depending on a lot of factors. And the same can be said of the other outcomes. Since we are not able to know the exact amount for these VARIABLES, we call them Random Variables. This is in contrast to known or fixed amounts, such as your weekly pay check, the size of your shoes, etc. Random Variables are random because there are factors at work in the process that affect the outcome. Yet, if we collect the data over time, we can calculate statistics about these variables, such as the average (mean) and variance.
What are some random variables that you experience in your daily life? Identify three of them and discuss how you would go about collecting data to determine the mean and variance.
REALITY-BASED RANDOM VARIABLES: DATA COLLECTION AND STATISTICAL TREATMENT
Several events in our lives happen to us at random or by chance. Despite our care and strategies in avoiding these to happen, these events occur because of factors that may be beyond our control or at first were within our control but turned out to be beyond control because of some changes in the environment.
What will be discussed in this report are three among the random events that take place in relation to family and work, with the corresponding data collection and functional statistical procedures done in order to handle them, as indicated below:
1. Spending beyond the budget. This happens both at home and at work.
At home, this is a situation when consumption expenditures exceed aggregate family disposable income. This is a critical event that needs to be addressed, otherwise, may result to debts or the so-called dissavings.
To address the issue, data that include the following must be gathered: earnings from all family sources that include base compensation, commissions, and profits from business. On the other hand, consumption expenditures on food, education, transportation, clothing, health, social commitments, and others must be obtained.
To analyze or give ...
The random variable of repeated events is determined.