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Economic statistics Essay Example
 Category:Finance & Accounting
 Document type:Math Problem
 Level:Undergraduate
 Page:1
 Words:358
Statistics 4
Subject: Economic Statistics
Question 1

Critical value approach

Null and alternate hypothesis

The level of significance is 5%

Test statistic is student’s ttest

One tailed test

At 5% level of significance, the critical value is 1.833

The test statistic of 2.1082 lies beyond critical value of 1.833 hence null hypotheses is rejected and alternate accepted.

Pvalue approach

Null and alternate hypothesis

The level of significance is 5%

Test statistic is student’s ttest

Pvalue is 
Reject null hypothesis because Pvalue of 0.0321 is less than significance level of 0.05.
It is apparent that both the critical value approach and the Pvalue approach give the same conclusion.

The assumption that the number of cases is normally distribute dis important because it allows a comparison with the standard bell curve given by a particular mean and standard deviation.
Question 2
Question 3
Breaks down 6 times per 30day period
Probability of suffering heart attack: 45%
Sample 100 middleage balding men
Question 4
Each has a different color marked differently

Possible samples of size n=2 from the population of 6 tokens.
Samples of size 2 


Sampling distribution of sample means (Xbar)
sample mean 


The mean and the variance of the sampling distribution of Xbar
sample mean 


. Hence, the mean of the sampling distribution is equal to the population mean.
Population mean is given by
Variance of the population is 2.9167 hence sampling variance is given by:
Claim: 50% satisfied

Probability that in a random sample of 600 customers less than 45% are satisfied

If in a random sample of 600 customers, 270 express satisfaction with the bookstore, this means that :
Since the probability that less than 45% of customers will be satisfied is 0.7%, then the store is not efficient in delivering its services.
Question 5
Normally distributed random variable with a mean of 7.5 hours
Standard deviation of 2.1 hours

The proportion of students studying for more than 10 hours per week
Hence

Proportion of A students that spend less than 3 hours studying

Amount of time below which only 5% of all A students spend studying:
X is binomial random variable
Number of trials (n)=100