ECON 221--Quantitative Methods for Business and Economics I

Second Computer Assignment

Due: Thursday, June 22, 2017

Part I:
A. Open the file Mutual Funds from the G:drive or PHStat link on Moodle, and generate a
contingency table of Fees by Fund Objective (the same method you used in the first computer
assignment, with a slight modification.) If using Excel 2007, use the Insert tab and select
Pivot Table. (25 points)
a. drop variable names in column and row locations, as well as data field
b. double click on "Count of ..." which brings up a dialog box.
c. select Show value as tab; Show value as "% of total".
d. select Number Format; make sure the setting is number, not percentage. Set the
decimal places to 3.

B. Use the PHStat Add-in to generate the Binomial Probability Distribution for exercise 5.12 on
p. 117. Be sure to select Cumulative Probabilities. (15 points)

C. Using the textbook as a guide, use the PHStat Add-in to generate a normal probability plot of
the 3 year return data in the Mutual Funds file. Do the data show the characteristics of a normal
distribution? (10 points)

Part II:

A. Convert your Contingency Tables from the first assignment (DRINK by COLLECTOR and
WELL by COLLECTOR) to Joint Probability tables as you did with problem A above. Be
sure you can identify marginal and joint probabilities in the table. You should also be able to
calculate conditional probabilities and test for statistical independence of events. (25 points)

B. Use the PHStat Add-in to generate the Binomial Probability Distribution (including
cumulative probabilities) for the random variable X = number who collect water
themselves(SELF). Assume your sample proportion of those who collect water themselves
is representative of the population, in determining "probability of success." Recall that the
sample size is 25. For the exam, you should be able to respond to questions about the
binomial probabilities and cumulative probabilities you generate. (15 points)

C. Uuse the PHStat Add-in to generate a normal probability plot of "Distance" data. Do your
data show the characteristics of a normal distribution? (10 points)