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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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
88 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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