the UNIVERSITY OF FIJI

SCHOOL OF BUSINESS AND ECONOMICS

DEPARTMENT OF ECONOMICS
ECO 103: ECONOMIC STATISTICS
SEMESTER 1 - 2020
ASSIGNMENT 2
TOTAL WEIGHTING: 15%

Instructions

This assignment can be done either individually, groups of two or groups of three. No more than
three members in a group.

Assignment Guidelines
 Assignment should be MS Word processed with font Times New Roman, font size 12
and 1.5 line spacing.
 All questions must be answered.
 Only original work is to be submitted. Copied assignments will be given zero.
 Due Date: 19th June 2020 (Week 15).
 Submit electronic copy of the assignment in the Moodle Drop off box.
 Late assignments will be penalized at a rate of 10% per day.

1
SECTION A MULTIPLE CHOICE QUESTIONS [20 MARKS]

(Write the letter that represents the most appropriate answer)

1. The instructor’s sample produces a mean number of days absent of 3.5 days. This value is
an example of a:
A. Parameter.
B. Data.
C. Statistic.
D. Variable.

2. Study was done to determine the age, number of times per week, and the duration
(amount of time) of residents using a local park in San Jose. The first house in the
neighborhood around the park was selected randomly and then every eighth house in the
neighborhood around the park was interviewed. The sampling method was:
A. Simple random
B. Systematic
C. Stratified
D. Cluster

Use the following information to answer the next two questions. The table below contains data on
hurricanes that have made direct hits on the XZ economy between 1851 and 2004. A hurricane is
given a strength category rating based on the minimum wind speed generated by the storm.

Category Number of Direct Hits Relative Frequency Cumulative Frequency

1 109 0.3993 0.3993
2 72 0.2637 0.6630
3 71 0.2601
4 18 0.9890
5 3 0.0110 1.000
Total = 273

3. What is the relative frequency of direct hits that were category 4 hurricanes?
A. 0.0768
B. 0.0659
C. 0.2601
D. Not enough information to calculate
2
4. What is the relative frequency of direct hits that were AT MOST a category 3 storm?
A. 0.3480
B. 0.9231
C. 0.2601
D. 0.3370

5. During a medical camp, Pita weighed 55kg. This is an example of

A. Nominal level
B. Interval level
C. Ratio Level
D. Ordinal Level

6. Which of the following statement is incorrect?

A. Parameter is descriptive measure of population.
B. Histogram is the best representation of qualitative data.
C. Primary data involves collecting data to address specific need.
D. Inferential statistics utilizes sample and population.

7. A jar contains 10 marbles; 5 are solid color, 4 are speckled, and 1 is clear. If one marble
is picked at random, what is the probability it is speckled?
A. 0.5
B. 0.1
C. 0.4
D. 0.6

8. A study of people over 40 with an MBA degree shows that it is reasonable to assign a
probability of 0.756 that such a person will have annual earnings in excess of $80,000.
The probability that such a person will earn $80,000 or less is
A. 0.2440
B. 0.7560
C. 0.5000
D. 0.0005

3
9. From a deck of 52 cards a hand of 5 cards is dealt. How many different hands are
possible if it is an unordered selection of 5 cards?
A. 2,598,960
B. 133,784,560
C. 0.09615
D. 10.4000

10. The probability that a married man drives is 0.90. If the probability that a married man
and his women drive is 0.45, what is the probability that his wife drives, given that he
drives?
A. 0.90
B. 0.45
C. 2
D. 0.5

11. Two students Jay and Veeru who do not know each other are trying to solve a difficult
math’s problem independently. The probability the Jay solves it is 0.56 and the
probability that Veeru solves is 0.62. What is the probability that both of them solve the
problem?
A. 0.2728
B. 0.1672
C. 0.3472
D. 0.5600

12. If 30% of the people in a community use the library in one year, find the probability for a
sample of 15 people at most 7 people used the library.
A. 0.08
B. 0.9477
C. 0.4853
D. 0.147

4
13. A pair of dice is thrown. If it is known that one die shows a 4, what is the probability that
the total of both dice is less than or equal to 7?
A. 0.005
B. 0.571
C. 0.138
D. 0.545

14. If P (A) = 0.4, P (B) = 0.5, P (A⋂B) = 0.2. Find P (A | B)

A. 0.2
B. 0.5
C. 0.4
D. 0.9

15. The weights of ripe water melons of a particular variety are known to be normally
distributed with a mean of 5.38kg and a standard deviation of 1.6kg. If 1800
watermelons of this variety are selected at random, approximately how many would you
expect to weigh more than 7.5kg
A. 167
B. 1000
C. 734
D. 900

16. If the significance level is 0.10, thus with two tail test identify the corresponding Z score.
A. 1.96
B. 1.65
C. 2.37
D. 1.86

17. What is the critical t – value for α = 0.05 with d.f = 16 for a right –tailed t – test.
A. 1.654
B. 1.956
C. 2.508
D. 1.746
5
 18. Identify the dependent variable in the regression ?
A. Sales
B. Slope
C. Y intercept
D. Price

19. Given a random sample of size 24 from a population with normal distribution, find k
such that P(-2.069 < T < k) = 0.965.
A. 1.714
B. 1.139
C. 2.567
D. 2.500

20. In the regression equation Grade Total = 0.3 + 0.2Study time, what is the impact of study
time on grade.
A. For every one hour devoted to study, the grade total will decrease by 0.2 points
B. For every one hour devoted to study, the grade total will improve by 0.2 points.
C. For every one mark of grade total, study time devoted will improve by 2 hours.
D. For every one hour devoted to study, the grade total will improve by 0.3 points.

SECTION B TRUE OR FALSE [15 MARKS]

(Write answer as either True or False for each of the following statement)

21. In the equation , the value of slope is 3.2.

22. When population standard deviation is known and the sample size is more than 30, Z
score is appropriate.
23. The ranking of four machines in your plant after they have been designated as
excellent, good, satisfactory or poor can be ranked as ordinal.
24. The response time of emergency services is nominal.
25. Nominal level data is the lowest level of data measurement; used only to classify.
6
 26. The P (Z < -0.5) is 0.3085.
27. Residual is the difference between actual y values and the predicted y values.
28. A negatively skewed histogram has the tail on the right hand side.
29. The mean value can be significantly influenced by outliers.
30. Standard deviation is a good measure of central location.
31. Chebyshev’s theorem suffices for data that are not normally distributed.
32. A histogram with two peaks can be termed as multimodal.
33. A symmetric distribution has the characteristic; mean = median = mode.
34. The value of confidence level for a significance level of 10% is 95%.
35. An employee’s staff number starting with the alphabet of their first name can be
classified as Nominal.

SECTION C TECHNICAL QUESTION [15 MARKS]

In Fiji, Fijian families are believed to use an average of 25 coconuts a month with a
standard deviation of 20. A random sample of 30 Fijian families is found to consume an
average of 36 coconuts a month. Determine whether Fijian families use significantly more
than 25 coconuts a month at the 10% level of significance. (15 marks)

THE END