Assignment Overview The data are from the US Small Business Administration yearly report from 2007. The first column shows ranges of firm size for the different categories (firm size refers to the...

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Assignment Overview The data are from the US Small Business Administration yearly report from 2007.  The first column shows ranges of firm size for the different categories (firm size refers to the number of people employed by a given firm).  For each firm size range, you will find the number of firms that fit within that range as well as the total number of people employed in that range.  For example, in the 5-9 employees’ range, there are a total of 1,060,250 firms and 6,974,591 employees divided among those firms.  Column E has the average annual wages for an employee of that firm size.  So for the firms with 5-9 employees, on average, an employee earns $31,889.98 annually in wages.  Column F shows the amount of revenue received by the firms in the given size.  Continuing with our example, in the 5-9 employee category each firm made on average $1,079,870.  Column G shows the revenues a company makes per employee they have.  For the firms with 5-9 employees, each employee brought in about $164,157.33 in revenue for the firm.  Column H shows the total amount a firm spent on wages to employees.  For a firm with 5-9 employees, the firm would spend a total of $63,401.86 per year on wages to employees. You must find the midpoint of the firm size range shown in Column A.  Do this by finding the average between the minimum and maximum of the range.  For the final category (5,000 and up), use 20,000 as the midpoint.  Parts of this project can be completed earlier in the course as the topics are covered.  Doing the part that relates to the current material as it is covered will help you keep the project on track instead of having a large volume of work to do at the very end. A successful report should contain the following elements: · Visual representations of the data. You may choose which of the chart types covered in the class to use (Scatter, histogram, pie chart, etc).  You may choose to do it all in one chart or use multiple charts.  Be sure to label your charts well.  If you would like to use a different type of chart from one presented in class, you should first have it approved by the instructor. · Determine the correlation between each of the pertinent data labels and justify why this correlation should be calculated and interpret the correlation you found. You can show correlation visually as well, but you must include the numerical calculations.  Since Column F (Mean Pay Per Employee) is calculated from Column D (Total Employment) and Column E (Total Annual Payroll), you should not find the correlation between Columns F and D or E.  Likewise, the correlation between Columns A and B would not be useful information as well as finding the correlation between column H and either column C or G. · Find an equation for the regression line for the pairs of variables that have a significant relationship from part 2. You must calculate at least 1 regression line but may choose to do more.  Interpret your results.  Be careful when determining which variable is the dependent one and include a justification for your choice.  You may choose to include a visual representation of the data along with the regression line found. · Use the regression line(s) found in 3 to predict values not included in your independent variable sample but that are within the predictive range of the data. Interpret these values.  You must have at least 1 prediction for each regression line. · Perform a hypothesis test for the correlation between two of the variables in at least one of the regressions you chose to include in the paper. Be sure to include both the null and the alternative hypothesis, the test being performed and why, the relative test statistic, and the conclusion you can draw from the test. See page 478 in the textbook for step by step directions. · At least one Bible reference that pertains to the subject as well as 2 quality reference articles. The Biblical reference does not have to be a specific verse or passage per say, but include how the topic relates to Biblical principles and ideals.  You can relate the Biblical content to statistics in general or to the topic of wages. The outside references should be from reliable sources who have looked into the relationship between your chosen variables of interest.  For example, if you chose to focus on the impact of firm size on one of the other variables, you might look for articles on how the size of a company impacts that other variable.  The components outlined above will be integrated into a comprehensive final report paper, like a case study but with more information. This report should be APA formatted, a minimum of 5 pages in length, exclusive of appendices, table of contents, references, and cover sheet. This paper will be graded based on the analysis and summary, as well as the overall clarity and effectiveness of the work. Sheet1 Employer Firms, Employment, and Annual Payroll Small Firm Size Classes, 2007 average Employment Size of FirmMidpoint of Firm Size RangeNumber of Firms in CategoryTotal Employment in CategoryWages per Employee (in dollars) Revenues per Firm (in $1000s)Revenue per Employee (in dollars)Total Annual Wages 0-403,705,2756,139,463$ 38,264.15$ 387.20$ 233,681.81$ 63,401.86Find the mid point of the firm size in Column A 5-91,060,2506,974,591$ 31,889.98$ 1,079.87$ 164,157.33$ 209,780.28Do this by finding the average between the min and max of the range for the final category (5000 and up) 10-14425,9144,981,758$ 33,354.20$ 1,858.85$ 158,921.74$ 390,131.74use 20,000 as the midpoint. 15-19218,9283,674,424$ 34,270.87$ 2,757.93$ 164,322.02$ 575,192.33 20-24134,2542,928,296$ 34,688.99$ 3,646.30$ 167,172.60$ 756,622.68 25-2989,6432,405,637$ 35,580.34$ 4,484.54$ 167,110.57$ 954,825.11 30-3464,7532,063,987$ 35,716.09$ 5,627.43$ 176,548.10$ 1,138,442.23 35-3947,6411,754,582$ 36,528.71$ 6,388.19$ 173,454.28$ 1,345,324.62 40-4438,2211,600,913$ 36,850.13$ 7,678.41$ 183,318.25$ 1,543,493.26 45-4929,7051,391,754$ 37,455.23$ 8,396.15$ 179,203.76$ 1,754,871.91 50-7486,3645,195,105$ 37,460.92$ 11,342.06$ 188,551.64$ 2,253,409.15 75-9941,8103,582,686$ 38,470.48$ 16,986.85$ 198,236.83$ 3,296,523.15 100-14939,3164,749,055$ 38,838.28$ 24,601.82$ 203,671.10$ 4,691,350.29 150-19918,6203,205,201$ 39,782.60$ 36,215.78$ 210,388.65$ 6,848,078.25 200-29917,7804,309,143$ 40,127.68$ 50,497.68$ 208,359.00$ 9,725,303.60 300-3998,1552,808,347$ 40,918.95$ 73,048.61$ 212,121.72$ 14,091,308.77 400-4994,7152,101,982$ 41,425.26$ 101,146.75$ 226,884.40$ 18,467,688.65 500-7496,0943,695,682$ 41,145.05$ 131,354.76$ 216,597.62$ 24,952,251.72 750-9992,9702,561,972$ 42,870.60$ 214,208.49$ 248,324.04$ 36,980,905.39 1,000-1,4992,9163,552,259$ 43,340.87$ 271,945.71$ 223,236.45$ 52,797,665.29 1,500-1,9991,5422,664,416$ 45,265.62$ 451,192.83$ 261,122.64$ 78,214,293.77 2,000-2,4999422,094,728$ 44,875.25$ 577,535.89$ 259,718.11$ 99,789,225.05 2,500-4,9991,9206,687,266$ 47,947.90$ 1,031,080.28$ 296,036.40$ 167,000,193.23 5,000+1,92739,481,018$ 47,385.86$ 6,703,445.80$ 327,183.56$ 970,857,263.10 *Source: U.S. Small Business Administration, Office of Advocacy, based on data provided by the U.S. Census Bureau, Statistics of U.S. Businesses. See http://www.sba.gov/advocacy/849/12162 for more information.
Answered 10 days AfterJul 25, 2022

Answer To: Assignment Overview The data are from the US Small Business Administration yearly report from 2007....

Komalavalli answered on Aug 05 2022
87 Votes
Firm and employment analysis:
An organization growth is dependent on the productivity of the employee. This analysis trying to find how well the revenue of a firm dependent on employee wage level and also find whether the firm size is determined by all other variables.
Summary stat
istics:
     
    Midpoint of Firm Size Range
    Number of Firms in Category
    Total Employment in Category
     
     
     
     
    Mean
    1343.26
    252068.96
    5025177.71
    Standard Error
    831.93
    156987.20
    1532334.43
    Median
    105.75
    33963.00
    3378730.00
    Mode
    #N/A
    #N/A
    #N/A
    Standard Deviation
    4075.61
    769077.09
    7506874.93
    Sample Variance
    16610576.73
    591479563845.69
    56353171220772.40
    Kurtosis
    21.38
    19.59
    21.64
    Skewness
    4.54
    4.33
    4.56
    Range
    19998.25
    3704333.00
    38089264.00
    Minimum
    1.75
    942.00
    1391754.00
    Maximum
    20000.00
    3705275.00
    39481018.00
    Sum
    32238.25
    6049655.00
    120604265.00
    Count
    24.00
    24.00
    24.00
     
    Wages per Employee (in dollars)
     Revenues per Firm (in $1000s)
    Revenue per Employee (in dollars)
     
     
     
     
    Mean
    39352.25
    405704.51
    210346.78
    Standard Error
    885.93
    278270.80
    8926.19
    Median
    38654.38
    20794.34
    206015.05
    Mode
    #N/A
    #N/A
    #N/A
    Standard Deviation
    4340.15
    1363242.93
    43729.21
    Sample Variance
    18836867.96
    1858431288443.04
    1912243830.55
    Kurtosis
    -0.53
    22.29
    0.94
    Skewness
    0.37
    4.66
    1.08
    Range
    16057.92
    6703058.60
    168261.82
    Minimum
    31889.98
    387.20
    158921.74
    Maximum
    47947.90
    6703445.80
    327183.56
    Sum
    944454.01
    9736908.20
    5048322.63
    Count
    24.00
    24.00
    24.00
     
    Total Annual Wages
     
     
    Mean
    62445731.06
    Standard Error
    40343821.74
    Median
    3993936.72
    Mode
    #N/A
    Standard Deviation
    197643555.08
    Sample Variance
    39062974865732400.00
    Kurtosis
    21.78
    Skewness
    4.59
    Range
    970793861.24
    Minimum
    63401.86
    Maximum
    970857263.10
    Sum
    1498697545.45
    Count
    24.00
Box plot
By looking at the summary statistics and box plot we can say that there exists an problem of outlier. Solution to mitigate this issue is to drop the row contains the firm size above 5000
Now we can say that it is clean and ready for the analysis we will look into section 1.data insights and 2.Model building.
1.Data insights:
Histogram
Revenues per employee and wage per employee histogram plot shows that curve is negatively skewed (left skewness), indicates that the data were more concentrated towards large firms i.e right tail.
Total employment in category is positively skewed one (right skewness), indicates that the data were more concentrated towards small firms i.e left tail
The total employment category plot indicates a mix of distribution, firm size 0-4 to 40-44 shows a positive skewness above that indicates a negative...
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