Business Statistics Report, TP, Singapore: Describe the 99% confidence interval of the mean monthly household expenditure

Question 1

Describe the 99% confidence interval of the mean monthly household expenditure in 2019 and 2020, respectively. Interpret and discuss whether Mr. Goh can conclude that the household expenditure of Singapore residents in 2020 is lower than that in 2019.

Apply an appropriate hypothesis test to determine if the household expenditure of Singapore residents in 2020 is lower than that in 2019, at the significance level of 1%. Examine the assumptions required to perform the test. Are these assumptions reasonable? Please provide explanations.

Criticize the analysis done by Mr. Goh by identifying three (3) concerns. If you have a free hand to study this research question starting from data collection to analysis, explain how you would conduct the project. Keep your answer within 300 words and indicate your word count at the end of your answer.

Summarise the above analysis in a simplified report. You may also use the result you have developed in your TMA. The word limit is 300 words. Please indicate the word count at the end of your answer.

A report shows that Covid-19 reduced household expenditure in Europe by 8% in 2020. Elsewhere, consumer spending also dropped significantly in 2020, with 4% seen in the United States, and 17% reported in China (Broom, 2021).

After reading the report, Mr. Goh, a student of the Singapore University of Social Sciences, was interested to find out how Covid-19 has affected household spending in Singapore. Surprisingly, he found news saying that consumer spending among Singapore residents was resilient and at a similar level to 2019 (Choo, 2021).