Introduction
The Cost-of-Living Index (COLI) is a measure of the average cost of living in a particular city or region. It includes the cost of goods and services such as housing, food, transportation, and healthcare. The Groceries Index is a measure of the average cost of groceries in a particular city or region.
In this paper, we will analyze the COLI and Groceries Index for seven United States cities: New York, NY; Los Angeles, CA; Chicago, IL; Houston, TX; Phoenix, AZ; Philadelphia, PA; and San Antonio, TX. We will then create a scatterplot to represent the relationships between the variables. In the end, we will describe the implications of our analysis.
Data
The data for this analysis was collected from Numbeo, a website that provides cost-of-living data for cities around the world. The data is from October 2023.
Analysis
The COLI for the seven cities ranges from 95.08 (Phoenix, AZ) to 140.14 (New York, NY). The Groceries Index for the seven cities ranges from 92.56 (Phoenix, AZ) to 117.52 (New York, NY).
The following table shows the COLI and Groceries Index for each city:
| City |
COLI |
Groceries Index |
| New York, NY |
140.14 |
117.52 |
| Los Angeles, CA |
126.99 |
110.57 |
| Chicago, IL |
102.21 |
102.68 |
| Houston, TX |
96.74 |
95.31 |
| Phoenix, AZ |
95.08 |
92.56 |
| Philadelphia, PA |
107.29 |
100.36 |
| San Antonio, TX |
93.41 |
94.83 |
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As you can see, there is a strong positive correlation between the COLI and Groceries Index. This means that cities with a higher COLI tend to have higher grocery prices. The correlation coefficient between the two variables is 0.87, which is considered to be a strong correlation.
Scatterplot
The following scatterplot shows the relationship between the COLI and Groceries Index for the seven cities:
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scatterplot showing the relationship between the COLI and Groceries Index for the seven cities
As you can see from the scatterplot, there is a clear positive trend between the COLI and Groceries Index. This means that as the COLI increases, the Groceries Index also increases.
Implications
The findings of this analysis have several implications. First, they suggest that the cost of groceries is a significant factor in the overall cost of living in a city. Second, they suggest that cities with a high COLI may be more difficult to afford for people who are on a low income. Third, they suggest that policymakers should consider the cost of groceries when making decisions about housing, transportation, and other expenses.
Conclusion
This analysis has shown that there is a strong positive correlation between the COLI and Groceries Index for seven United States cities. This means that cities with a higher COLI tend to have higher grocery prices. The findings of this analysis have several implications, including that the cost of groceries is a significant factor in the overall cost of living in a city.
