Comparing the incomes of men and women in certain british provinces

We can assume that there is adequate proof favoring the alternative hypothesis Ha because the p-value is lower than the significant level p-value two-tailed < 5%, which allows us to reje

Table of content

EXCUTIVE SUMMARY 2

1 INTRODUCTION 3

2 METHODOLOGIES 3

3 FINDINGS 4

3.1 Pivot table: Comparing the incomes of men and women in certain British provinces 4

3.2 Interval estimation 5

3.3 Hypothesis tests mean and proportion 5

3.4 ANOVA - Analysis 9

3.5 Regression 11

4 Conclusion 13

5 Recommendation 13

6 References 14

EXCUTIVE SUMMARY

Purpose: In this report, I will focus my attention on performing an analysis of the survey responses I have processed in the Excel file, which are about the factors that influence the financial choices made by UK people In order to assist the Bank of England to figure out the characteristics of the people who might become their customers, and then design loan promotion and offer that appeal to those potential clients I will give my recommendation based on those data analysis that I’ve done Finding & conclusion: We see a considerable wage disparity between men and women in every provinces, with men earning significantly more money than women Another observation is that over 20% of respondents admitted to limiting their expenditures owing to financial concerns Men have a much lower or equal probability of defaulting on their most recent monthly payment compared to women The proportion of those under 44 who are extremely or somewhat anxious about their amount of debt is less than or equal to that of people aged 44 and older Employees in diverse occupations are likely to earn varying amounts of money In the United Kingdom, older adults have a higher proportion of loans for various causes The respondents' social position is directly related to the quantity of debt they hold

Recommendations: My research for this report led me to conclude that it would be beneficial for the bank to consider extending credit to adults aged

25 and older, with competitive interest rates and other enticing terms Moreover, banks have the ability to increase the number of loans made available to those of low social rank These loans might have long payback terms, and no requirement for collateral Loans are secured and disbursed swiftly upon request

The findings of the most recent study conducted by the Bank of England to determine the extent to which certain aspects have a role in the financial choices made by residents of the United Kingdom The information provided

by each and every sort of consumer regarding their level of income and the amount of money they spent on loans This assignment will furthermore offer recommendations regarding the creation of prospective loan promotion based on the information received from the survey This information will be utilized to enhance the assignment

The Bank of England Influenced Factors on Financial Decisions Survey data were used in the creation of this report, along with data that I extracted from BoE reports to analyze into interval estimation, and regression in the Excel file This report was created using both sets of data

3 FINDINGS

3.1 Pivot table: Comparing the incomes of men and women in certain British provinces

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000

The incomes of male and female in British provinces

North/Yorks & Humberside North West

Midlands South East East Anglia South West Wales London Scotlands

We are able to do an analysis of the average earnings of men and women living in specific British provinces according to the information that has been provided It is obvious that the total income of males in the

tbale comes to 71,127,597, while the total income of females is 46,252,117 The sum of respondents who chose not to disclose their gender brought in a total income of 57,624 dollars

When looking at the regions, the South East has the greatest overall income, with males getting £12,148,925 and females earning £7,334,196 This is because the South East is home to the most prosperous economy Both males and females in the Midlands have a total income that ranks second highest in the country, coming in at £9,381,746 and £7,509,856, respectively The overall income for males in the North West region is the third highest in the country at £7,839,633, while the total income for females in this region is £5,342,487 In addition, we observe that there's a substantial discrepancy in income between males and females in every region, with males making a great deal more money than females do This

is the case regardless of the country or region For instance, males earn

over £5 million more than females each year in the South East region of the United Kingdom It appears from this that there is a disparity in pay between the sexes in these places

According to the data, it appears that there is a gender pay difference in several areas of the United Kingdom, with males earning a significant amount more than females

3.2 Interval estimation

This table illustrates the interval estimation of average income in the UK

As we can observe from the table, the interval has 2 limits, the upper limit and the lower one are 44885.53825 and 31153.89032, respectively The sample standard deviation and margin of error of this result is 30249.63065 and 6865.823968, respectively Thereby, we can assume that the average income of a UK resident is around 38091.71429 dollars per year

3.3 Hypothesis tests mean and proportion

sample mean 38.97402597

sample std dev (s) 10.75195701

test statistic (z) -8.93997371

p-value (lower) 1.94631E-19

p-value (two-tailed) 3.89263E-19 <5% reject H0

critical value 1.99167261 < |z| reject H0

Null hypothesis (H0): The average age of UK citizens who joined this survey is equal to 50, H0: m = 50

Alternative hypothesis (Ha): The average age of UK citizens who joined this survey is less or more than 50, Ha: m >< 50

We can assume that there is adequate proof favoring the alternative hypothesis (Ha) because the p-value is lower than the significant level (p-value (two-tailed) < 5%), which allows us to reject the null hypothesis (H0) and come to this conclusion Consequently, we can speculate that the median age of people living in the UK who participated in the poll is either under or over 50 years old

sample proportion 66%

test statistic 4.056996522

p-value (lower) 0.999975146

p-value (upper) 2.48539E-05 <5% reject H0

Null hypothesis (H0): The proportion of people who claim that they have refrained from spending money because they are concerned that they will not be able to obtain additional credit when they require it because they are close to their credit limit or they believe that their

loan application will be denied, is less than or equal to 20%, p <= 20%

Alternative hypothesis (Ha): The proportion of people who claim that they have refrained from spending money because they are concerned that they will not be able to obtain additional credit when they require

it because they are close to their credit limit or they believe that their loan application will be denied, is more than 20%, Ha: p > 20%

By rejecting the null hypothesis (H0) and presuming that there is absolute evidence favoring the alternative hypothesis (Ha), we know that the p-value is less than the significance level (p-value (upper) < 5%) According to the result,

we can assume that over 20% of respondents admitted to having restrained spending due to worries about being unable to get more credit when they needed it, likely because they were so close to their limit, or because they assumed their loan application would be denied, we can extrapolate that this phenomenon is more widespread than previously thought

t-Test: Two-Sample Assuming Unequal

Variances

P(T<=t) one-tail 0.285852924 >5% cannot reject H0

Null hypothesis (H0): The previous monthly payment for all loans taken out by British men has a mean that is either less than or equal to women, H0: m1 – m2 <= 0

Alternative hypothesis (Ha): The previous monthly payment for all loans taken out by British men has a mean that is greater than women, on average, H0: m1 – m2 > 0

Because the p-value is greater than the significant level ( p-value (one-tail), we are forced to conclude that there is substantial evidence favoring the null hypothesis (H0), and as a result, we cannot reject the null hypothesis (H0) As a result, we are able to establish beyond a reasonable doubt that, in comparison to women, men have a significantly lower or equal likelihood of defaulting on their most recent monthly payment than women do

Under 44 44 and older

z-statistics 1.135492805

-p-value (lower) 0.128084447

p-value (upper) 0.871915553 >5% can not reject H0

Null hypothesis (H0): The average proportion of under 44 years old

participants who are very or somewhat concerned about their level of debt

is either less than or equal to the group of 44 and older participants, H0: p1-p2 <=0

Alternative hypothesis (Ha): The average proportion of under 44 years old participants who are very or somewhat concerned about their level of debt

is greater than the group of 44 and older participants , H0: p1-p2 >0

Anova: Single Factor

SUMMARY

Agriculture, forestry and fishing 33 875122 26518.8485 890222269

Transport and storage 179 5246830 29311.8994 344552651

Information, communication

ANOVA

Between Groups 14333860264 2 7166930132 10.627087 3.04E-05 3.01439

reject H0

We are compelled to draw the conclusion that there is strong evidence

favoring the null hypothesis (H0), and as a result, we cannot reject the null hypothesis (H0) This is due to the fact that the p-value is bigger than the significant level ( p-value (upper) > 5%) Consequently, we can come to the

conclusion that the average percent of under 44 people who are very or somewhat concerned about their level of debt is either less than or equal to

44 and older people

3.4 ANOVA - Analysis:

Null hypothesis (H0): Those who work in Agriculture, forestry, fishing; Transport and storage; Information, communication, and IT, earn the same amount of money

Alternative hypothesis (Ha): Workers in at least one of these three industries earn different amounts of money

By assuming that there is absolute evidence favoring the alternative hypothesis (Ha) and concluding that there is no evidence to support the null hypothesis (H0), we can determine that the p-value is lower than the significance level (p-value < 5%) According to that, workers in these three fields have widely varying salary expectations

t-Test: Two-Sample Assuming Unequal Variances

Null hypothesis (H0): Workers in Agriculture, forestry and fishing make the same income as those who work in Transport and storage

Agriculture, forestry and fishing

Transport and storage

Hypothesized Mean

P(T<=t) one-tail 0.303238825

t Critical one-tail 1.68709362

P(T<=t) two-tail 0.60647765 >5%

can not reject H0

t Critical two-tail 2.026192463

Alternative hypothesis (Ha): Workers in Agriculture, forestry and fishing; and those who work in Transport and Storage make the different amount of money

Because we are constrained to arrive at the conclusion that there is substantial support for the null hypothesis (H0), and because of this, we cannot reject H0 This is because the p-value is higher than the significant level (p-value (two-tailed) > 5%) As a consequence of this, we can reasonably infer that employees in various fields earn varying amounts of money

3.5 Regression

Coefficie

nts StandardError t Stat P-value Lower95% Upper95% Lower95.0% Upper95.0%

Intercept

5760.87

022

2755.089 598

2.09099 197

0.03829 786

314.90 61

11206.8 343

314.90 611

11206 83

fgenage_1 3.68866692 33.59661468 0.10979282 0.09127276

-62.721

5 70.098833

-62.721

5 70.09883

dsocialgrade

-244.699

02

489.2471 736

-0.50015 42

0.06177 353

-1211.7 9

722.392 047

-1211.7 9

722.39 2 qincomefreev2

_n_1

0.02389

347

0.036564 289

0.65346 458

0.05145 062

-0.0483 8

0.09616 981

-0.0483 83

0.0961 7

ANOVA:

In this table, it is straightforward to recognize the items that are highlighted The results of age, social grade, and income (factors that have

certain influences on the amount of debt that British people have) are demonstrated in the column labeled "P-value." All of these results have a

value that is greater than zero, indicating that they are all significant As a side effect, we move on to the column labeled "Coefficients." The result of survey respondents’ age in the coefficient column is approximately 3,688, which is greater than 0, indicating that this is directly proportional to the debt column This exemplifies that older people in the UK tend to have more loans for various purposes (which could be house or car purchases, children's tuitions, investment, etc.) Because of this, the Bank of England should use this element to construct more loan promotion, offer with interesting rate, and other benefits that are ideal for middle-age and older customers In contrast to age, social degree is represented by a negative value in the coefficient column (-244.69902), which leads to the conclusion that social degree is inversely related to the debt level column This indicates that the respondents' level of social status correlates directly with the amount of debt they carry It's possible that this is due to the fact that when a person has a high social degree, it makes it simpler for them to acquire a fantastic work with an ideal income The ratio of the respondents' income to their total debt can be shown to be approximately

0.0238934673612903 in the coefficient column, which shows that this relationship holds true Moving to the regression statistics, the Adjusted R square represents the percentage of the influence of age, social degree, and income on the amount of debt that respondents have In this table, the percentage of influence is only about 0.00756895, this reveals that these three factors do not have a substantial impact on the level debt of British

Adjusted R Square 0.01325128

Standard Error 7067.50316

4 Conclusion

To summarise, if the Bank of England wishes to expand its loan promotion, they should concentrate on the middle-aged and lower-income groups because they are more concerned about their debt and have more debt than others Furthermore, my research has limitations because the survey was only completed by a subset of British citizens, not the entire country, and some respondents may have exaggerated about their financial situation As a result, the bank should consider my findings and acquire more about the backgrounds and behaviours of its clients so that it can construct the most efficient credit advertising

5 Recommendation

Loan promotion for customers aged 25 and older: The Bank of England is able to advertise loan packages that assist individual consumers in fulfilling their goal of owning a property, vehicle, or business The loan should be applied for customers aged 25 or older and they must have a job with a certain salary It should only request appraisals, not fieldwork If they live at

a different address than the one listed in the household registration book, they do not need a temporary residence permit Monthly interest rates range from 0.8 to 1.8% Each consumer may borrow up to 15 times their wage Customers registered for a flexible installment schedule of up to 48 months Loans are secured upon request and disbursed quickly

6 References

Timo Digital Bank, “CQc hRnh thSc vay ngân hUng phV biWn năm 2023”, (March 29 2023), th https://timo.vn/blogs/vay/cac-hinh-thuc-cho-vay-pho-bien-cua-ngan-hang/