In statistics, the word random sample refers to the method used to pick a sample. A simple random sample is the most common sort of random sample. A random sample indicates that members of the population have equal chances of being chosen. We can use any method to create random numbers while performing this type of sampling. Random numbers can be generated using a calculator and then listed. Ten of the country's 52 states will be chosen for the group to be compared on income and cost of living. How were the ten cities chosen? The cities are designated by the letters 00, 01, 02, 03,....., 99. Using a calculator, random numbers are generated then two-digit random numbers are then used to choose 10 cities. It must be noted that when conducting a random sample, it must be ensured that all possible samples have equal likelihood of being chosen. So the cities chosen for the sample for this project was a random sample
Having control over my monthly income and expenses as well as the average annual pay and the cost of living are the factors I considered when selecting the city to stay in. According to Devon Thorsby of US News and World Report, Columbus Ohio is ranked the 21st most affordable city to live and work in. That is why I would most likely end up in Columbus Ohio after graduation. The average annual pay is $47,420 with income spent on expenses standing at about 27 percent of average income. Columbus will be affordable city to live in according to my earnings and expense. The city’s average cost of living is much lower as compared to the other three cities. As a new employee who is still picking up in the world of employment and profession, I would consider not starting from a higher end but in a lower end so that when I have an increment I salary, it will be easier to also adjust to other towns. According to my budget I will end up saving about $ 600 dollars every month at the beginning.
If my employer can match 401(k) funds, I will contribute enough to qualify for the whole match which will on average be about $200 monthly then I will also give contribution to a Roth IRA of $500 per month. I will not give any extra contribution to the 401(k) apart from what is required to obtain the employer match. This is aimed at providing a good investment of tax free money for retirement. My aim is to save 30 % of my overall gross income. This savings will be a consolidated savings of 401(k) cash investments, withholdings and employer matching funds. To achieve this, I ensure that my lifestyle expenses do not go beyond 60% of my gross income. I intend to retire by the age of 60 years and having saved 8 times my annual salary by then which comes to about $ 800,000 to 1000,000 in savings at retirement.
Work Cited
Gordon, Robert J. The rise and fall of American growth: The US standard of living since the civil war. Princeton University Press, 2017.
Henderson, J. Vernon. Economic theory and the cities. Academic Press, 2014.
