The best-selling book The Millionaire Next Door by Thomas J. Stanley and William D. Danko (Longstreet Press, 1996) presents some very interesting data on the characteristics of millionaires. We tend to believe that people with expensive houses, expensive cars, expensive clothes, country club memberships, and other outward indications of wealth are the millionaires. The authors define wealth, however, in terms of savings and investments, not consumer items. In this sense, they argue that people with a lot of expensive things and even large incomes often have surprisingly little wealth. These people tend to spend much of what they make on consumer items, often trying to keep up with or impress their peers.
In contrast, the real millionaires, in terms of savings and investments, frequently come from “unglamorous” professions (particularly teaching), own unpretentious homes and cars, dress in inexpensive clothes, and otherwise lead rather ordinary lives.
Direction (answer the following questions i.e. question numbers 1, and 2)Consider the (fictional) data in the file C03_02.xlsx. For several hundred couples, it lists their education level, their annual combined salary, the market value of their home and cars, the amount of savings they have accumulated (in savings accounts, stocks, retirement accounts, and so on), and a self-reported “social climber index” on a scale of 1 to 10 (with 1 being very unconcerned about social status and material items and 10 being very concerned about these). Prepare a report based on these data, supported by relevant charts and/or tables, that could be used in a book such as The Millionaire Next Door. Your conclusions can either support or contradict those of Stanley and Danko.
1. Create a correlation (see section 3-4b from your textbook) table of the 6 variables (don’t include couple). You can use Excel Data Analysis ToolPak to perform this procedure (see Module 2: Video_chapter 3)
2. Construct 2 scatter plots: (a) savings vs. salary, and (b) SC index vs salary. How are they related? Make sure to interpret your findings.
1. Download the Excel file Data file: C03_02.xlsx and answer the above questions in the Excel file
2. Save the file as “Case 03-02_your last name.xlsx”. For example: “Case 03-02_Jonassen.xlsx”
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more