ALLAMA IQBAL OPEN UNIVERSITY, ISLAMABAD

(Department of Economics)
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Course: Introduction to Statistics for Economists(9309)

Level: BS Semester: Spring, 2024

ASSIGNMENT No. 1
(Units 1–5)
Total Marks: 100 Pass Marks: 50

Q. 1 Consider the following data: (5 x 4 = 20)

17 62 15 65
28 51 24 65
39 41 35 15
39 32 36 37
40 21 44 37
59 13 44 56
12 54 64 59
a. Construct a frequency distribution.
b. Construct a histogram.
c. Construct an ogive.
d. Construct tern-and-leaf

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Q. 2 (a) For the following distributions, indicate which distribution: (10)
i. Has the larger average value
ii. Is more likely to produce a small value than a large value
iii. Is the better representation of the distribution of ages at a rock concert
iv. Is the better representation of the distribution of the times patients have
to wait at a doctor's office

(b) For the next two distributions, indicate which distribution, if any (10)
i. Has values more evenly distributed across the range of possible values.
ii. Is more likely to produce a value near 0.
iii. Has a greater likelihood of producing positive values than negative values.

Q.3 These data represent the ages of patients admitted to a small hospital on
February 28, 1996: (20)
85 75 66 43 40
88 80 56 56 67
89 83 65 53 75
87 83 52 44 48

i. Construct a frequency distribution with classes 40-49, 50–59. etc.

ii. Compute the sample mean from the frequency distribution.
iii. Compute the sample mean from the raw data.
iv. Compare parts (b) and (c) and comment on your answer

Q. 4 What is the probability that we are rejecting null hypothesis when we reject the
hypothesized value because (20)
(a) The sample statistic differs from it by more than 2.15 standard errors in
either direction?
(b) The value of the sample statistic is more than 1.6 standard errors above it?
(c) The value of the sample statistic is more than 2.33 standard errors below
it?

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Q. 5 On a certain Monday noon, a check was made of five different computer rooms
in campus residence units. The number of students using computer in the five
units was 20, 12, 10, 8, and 11, respectively. (20)
(a) Find the average number of users per room
(b) Find the variance of this sample distribution

ASSIGNMENT No. 2
(Units 6–9)
Total Marks: 100 Pass Marks: 50

Q.1 (a) Two sets of 50 elementary school children were taught to read by two
different methods. After instruction was over, a reading test gave the
following results: (10)

X 1 =78.4, x 2 =75.3, s l = 6, s 2 = 8. Test the hypothesis that μ 1 = μ 2 .

(b) Give x = 84, o2 = 13, and n = 100, test the null hypothesis that μ= 86. (10)

Q. 2 (a) Describe the properties of an estimator. (10)

(b) Consider the following random sample from a normal population: (10)
12 16 8 10 9
i. Find the 90% confidence interval for population variance.
ii. Find the 95% confidence interval for the population variance.

Q. 3 (a) In the UK, some motorist groups want the current speed limit
onmotorways increased; they argue this would not be dangerous and
would enable motorists to reach their destinations more quickly.
However, some road-safety groups say speed can be a factor in accidents
and believe it would be dangerous to increase the existing speed limit.
(10)
(i) State the null and alternative hypotheses from the perspective of the
motorist groups.
(ii) State the null and alternative hypotheses from the perspective of
road-safety groups.

(b) Give x = 86, o2= 16, and n = 140, test the null hypothesis that μ = 82 (10)

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Q. 4 To the Internal Revenue Service, the reasonableness of total itemized deductions
depends on the taxpayer's adjusted gross income. Large deductions, which include
charity and medical deductions, are more reasonable for taxpayers with large
adjusted gross incomes. If a taxpayer claims larger than average itemized
deductions for a given level of income, the chances of an IRS audit are increased.
Data (in thousands of dollars) on adjusted gross income and the average or
reasonable amount of itemized deductions follow: (20)

Reasonable
Adjusted Gross Income Amount of Itemized
($1000s) Deductions ($1000s)
22 9.6
27 9.6
32 10.1
48 11.1
65 13.5
85 17.7
120 25.5

1. Develop a scatter diagram for these data with adjusted gross income
as the independent variable.
2. Use the least squares method to develop the estimated regression equation.

Q. 5 (a) What are the four components of a time series? How the seasonalvariations
can be detected and depersonalized from the time series data? (10)

(b) Explain with a suitable example, how Paasche price index differs from a
simplearithmetic average of price relatives. (10)

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