1 (a)

(i) (ii)

median = 459.5 Mean = 487 Standard deviation = 180.9540

(iii) (iv) 1(b) (i) (ii) 1(c) (i) (ii)

positively skewed 37.16% 0.003858 0.4628 0.3172 41198.84

2(a)

CV=1.6449 P=0.65 Test stat = -1.0911 Do not reject Ho.

2(b)

CVs = 2.024 Sp=7.2887 t-stat = 1.7354 Do not reject Ho.

3.(a) House Size = -1.6335 +0.4485 Family Income +4.2615 Family Size-0.6517 Education (b) SSR = SST- SSE = 3605.7736 F-ratio = MSR/MSE = 35.6353 MSR = SSR/3 = 1201.9245 MSE = SSE/36 =33.7285

(c)

R2

SSR 3605.7736 0.7481 SST 4820

There is about 74.81% of the total variation in house size can be explained by all the independent variables. (d) H0 : 1 = 2 = 3 = 0 H1 : At least one i 0

At = 0.05, critical value F0.05,3,36 = 2.866 Decision rule: Reject Ho if F > 2.866 Conclusion: Reject H0 as F = 35.6353 > 2.866. The model is useful in predicting the house size. (e) H0 : i = 0 H1 : i 0 for i = 1, 2, 3 Reject the null hypotheses if t > 2.024 or t <-2.024 Family income (X1) and family size (X2) are significant at 0.05 whereas education (X3) is not significant in explaining house size and should not be included in the model because its t-stat falls within the non-rejection area.

4.

(a)

Expected frequencies (ei) Department Sales Production Administration < 5 years 8 16 16 5 to 15 years 16 32 32 > 15 years 6 12 12

CV= 9.488 Test stat = 23 Reject Ho. 4 (b) (i) (ii) 107.56 107.67 106.56 (iii) Answer different because different weight being used.