Assignment for Statistical Economics

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TAKE AWAY ASSIGNMENT

REGISTRATION NUMBER:
YOUR FULL NAME:
10 MARKS

1. Imagine you're conducting a study to analyze the relationship between the number of
hours spent studying and the exam scores obtained by a group of students. You collect
data from 20 students and record their hours studied (independent variable) and exam
scores (dependent variable). The data is as follows:

Student Hours Studied (X) Exam Score (Y)


1 3 65
2 4 70
3 5 75
4 6 80
5 7 85
6 8 90
7 9 95
8 3 60
9 4 65
10 5 70
11 6 75
12 7 80
13 8 85
14 9 90
15 3 55
16 4 60
17 5 65
18 6 70
19 7 75
20 8 80
1. Plot a scatterplot of the data points (Hours Studied vs. Exam Score) to visualize the relationship
between the variables.
2. Calculate the mean and standard deviation of both the hours studied and exam scores.
3. Compute the correlation coefficient between hours studied and exam scores.
4. Interpret the correlation coefficient value in the context of this study.
5. Fit a simple linear regression model to predict exam scores based on hours studied.
6. Interpret the slope coefficient in the context of this study.
7. State the null and alternative hypotheses for testing the significance of the regression model.
8. Perform a hypothesis test to determine whether the regression model is significant at the 5%
significance level.
9. Calculate the coefficient of determination (R-squared) for the regression model and interpret its
meaning.
10. Use the regression model to predict the exam score for a student who studied for 10 hours.
Interpret the prediction in the context of this study.

2. Consider the following contingency table showing the relationship between gender and
preference for a particular brand of soft drink:

Brand A Brand B Brand C


Male 45 30 25
Female 35 40 20
i. Conduct a chi-square test for independence to determine whether there is a significant
relationship between gender and brand preference.
ii. State the null and alternative hypotheses for this test.
iii. Calculate the expected frequencies for each cell in the contingency table.
iv. Interpret the chi-square test statistic and determine whether to reject or fail to reject the
null hypothesis.

3. A company produces three different flavors of ice cream - vanilla, chocolate, and
strawberry. The company claims that these flavors are equally popular among
customers. To test this claim, a random sample of 200 customers was taken, and their
preferences for ice cream flavor were recorded. The observed frequencies are as
follows:

Flavor Observed Frequency


Vanilla 90
Chocolate 70
Strawberry 40
1. State the null and alternative hypotheses for the chi-square goodness-of-fit test in this
scenario.
2. Calculate the expected frequencies for each flavor assuming that they are equally popular
among customers.
3. Calculate the chi-square test statistic using the observed and expected frequencies.
4. Determine the degrees of freedom for the chi-square distribution in this test.
5. Interpret the chi-square test statistic and determine whether to reject or fail to reject the
null hypothesis.
6. Discuss the implications of the test results for the company's claim about the popularity of
ice cream flavors.

4. Suppose you are a quality control manager at a manufacturing plant producing light
bulbs. The company claims that only 5% of the produced light bulbs are defective. To
test this claim, you randomly select a sample of 200 light bulbs from the production line
and find that 15 of them are defective.

1. State the null and alternative hypotheses for testing the company's claim about the
proportion of defective light bulbs.
2. Calculate the sample proportion of defective light bulbs in the sample.
3. Determine the test statistic for testing the hypothesis.
4. Specify the appropriate distribution for the test statistic.
5. Determine the critical value(s) for the test at a significance level of 0.05.
6. Compare the test statistic to the critical value(s) and decide whether to reject or fail to reject
the null hypothesis.
7. Interpret the decision in the context of the problem.

5. A researcher wants to conduct a study to estimate the proportion of students in a


university who own a smartphone. The researcher wants the estimate to have a margin
of error of no more than 3% with 95% confidence. Based on previous studies, the
proportion of students who own smartphones is estimated to be around 70%.

1. What sample size should the researcher aim for to achieve the desired margin of error and
confidence level?

NOTE: The last question (5) is additional and goes beyond the scope of our syllabus for this
course. However, it can be beneficial for students who are seeking further understanding.
Please consider it for grading, and I will award 2 marks for correctness.

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