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THE UNIVERSITYOF THE WEST INDIES
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C La EXAMINATIONS OF April/Mav 2008
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Code and Name ofCourse:ECON 1005: Introduction to Statistics Paper:

Date and Time: ~~ :25/1.. ~/.200g 1- 0 Df/YJ Duration: 2 hrs

INSTRUCTIONSTO CANDIDATES:Thispaperhas 7 pagesand 5 questions.

Candidates are reauired to answer ALL Ouestions in Section 1 and TWO Ouestions in
Section 2.

Silent Cordless Non Programmable Calculators may be used

Stdtistical Tables are provided

iC)Tha lIniversitv o{the West Inditts Course Code ECON1005

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page 2

SECTION 1 (50 marks)

The question in this Section is compulsorv and MUST be attempted

Question 1.

A statistician has been observing the lifestyles of undergraduate students on the St

Augustine Campus. He draws a sample from the Level III population and the Level
IIII population on the campus and the data on disposable income (measured in $ per
week) was collected from each student in the sample. The data so obtained was
labeled 'Level III' and -'Level I/II', and processed using MINITAB. Some
preliminary results are shown in Exhibits I, II & III below.

Exhibit I

Descriptive Statistics: Level III, Levell/II

Variable N Mean Median TrMean StDev SE Mean

*
level III 115 .416.90 400.00 402.60 272.40
levell/II 203 411.60 300.00 323.00 ** 41.8

Variable Minimum Maximum Q1 Q3

Group C 00.00 1200.00 200.00 600.00
Group 0 00.00 6000.00 150.00 400.00
..

(a) Examine the results shown in Exhibit I, and

i) List the available estimators in Exhibit I for the mean disposable income of.Level
III students. [2 marks]

ii) Fill in the gaps marked by * and ** [3 marks]

ill) Comment on the statistician's claim that the disposable incomes of the Level III
students are nonnally distributed. [2 marks]

iv) Assuming normality, state clearly the values of the parameters of the Level III
distribution. [1 marks]

v) Assuming nonnality, calculate the probability that the disposable incomes of . I

Level III students will lie between 500 and 600 dollars. [6 marks]

vi) Assuming normality, calculate the 90thpercentile of the Level III group.
[8 marks]

vii)Estimate the proportion of Level III students with disposable incomes of less than
$750 per month [6 marks]

(Question 1 continues on the next page)

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page 3

viii) Calculate a 97% confidence interval for the mean disposable income of Level
III students and give an interpretation to the result obtained. [6 marks]

(b) Exhibit ITbelow shows the results of an analysis carried out on the data obtained
from the Level 1111students sample. .

Exhibit II

One-Sample Z: Levell/II
Test of mu = 500 vs mu not = 500
The assumed sigma = 594.9

Variable N Mean StDev SE Mean z p

Level 1111 203 411.6 594.9 19.1 * **

i) Explain what the statistician is doing here. [2 marks]

ii) Calculate the missing value * and use tables to approximate the value of **.
[5 marks]

ill) If you were the statistician, what would you conclude and why?
[2 marks]

(c) Exhibit ITIbelow shows the results of further analysis carried out the samples of
Level III and Level I/II students.

Exhibit III

Two-Sample T-Test and CI: Level III, Levell/II

Two-sample T for LEVEL III vs LEVEL 1111

N Mean StDev SE Mean

LEVEL III 203 412 595 42

LEVEL 1111 115 417 272 25

Difference= mu LevelIII - mu Level 1111

Estimate for difference: -5.3

95% CI for difference: (-101.5, 90.9)

T-Test of difference = 0 (vs not =):T-Value = -0.11 P-Value = * DF = 305

(Question 1 continues on the next page)

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i) Explain what the statistician is doing here. [2 marks]

ii) Fill in the blank marked * [3 marks]

iii) If you were the statistician, what would you conclude and why? [2 marks]

SECTION 2 (50 marks)

This Section contains THREE Ouestions worth 25 marks each. Candidates must
answer any TWO Questions from this Section.

Question 2.

a) ("Doubles" is a Trinidadian delicacy of East Indian origin, made of 2 pieces of a

type of.fried bread, with curried chickpeas in the centre. It is one of the most popular
streetfood items in Trinidad).
A recent poll of the Trinidad and Tobago population found that 60% of people liked
to eat "plenty pepper" with their "doubles". Assume that this result holds true for the
current local population. Find the probability that, in a random sample of 10, the
number of people who like "plenty pepper" is
i) Exactly 4 [5 marks]
ii) At most 9 [5 marks]

b) The stress scores (on a scale of 1 to 10) of students before a Statistics Examination
are found to be normally distributed with a mean of 7.08 and a standard deviation of
0.63. Find the probability that the stress score for a randomly selected student
before a Statistics Examination is:

i) More than 6.25 [3 marks]

ii) Between 7.40 and 8.90 [4 marks]

c) At the Flavorite Ice Cream Company, the machine that fills I-pound cartons of
chocolate ice cream is set to dispense 16 ounces of ice cream in every carton.
However, some cartons contain slightly less and some contain slightly more than 16
ounces of ice cream. The amounts of ice cream in all such cartons have a nonnal
distribution with a mean of 16 ounces and a standard deviation of 0.18 ounces.
Find the probability that the mean amount of ice cream in a random sample of 16
such cartons will be between 15.9 and 15.95 ounces.
[8 marks]

(papercontinuesoverlea~

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page 5

Question 3.

a) A sample of residents was asked by a competent research organisation to rate

the honesty and ethical standards of various groups. The data so gathered were
analysed by a statistician and the results he obtained using MINITAB are
shown below:

Expected counts are printed below observed counts

High Average Low Total.

Medical.Doctors 53 35 10 98
. 45.5 ..

Lawyers 24 43 27 ...
27 43.5 23.5

Business Executives 18 55 20 93
27 43 23

Parl.iamentarians 14 43 38 95
27 44 24

Total 109 176 .... 380

Chi-Sq = ?? + 2.42 + ??? +

0.33 + 0.006 + 0.86 +

3.00 + 3.35 + 0.39 +

6.26 + 0.23 + 8.17 = 55.916

OF = ????, P-Value = ?????

i) Carefully define the null and alternative hypotheses of the "I: test underlying
the generation of the above table. [1 mark]

ii) Fill in the gaps marked by '*', '**', '***', ,****, 'n', 'n?'. '????'and '??171'.
[12 marks]

iii) What is the conclusion of the test? Give reasons for your answer.
[2 marks]

b) According to a survey, UWI students on the St. Augustine campus wait an average
of 22 minutes in line for a Subway sandwich. A recently taken random sample of
20 students yielded an average time of 25 minutes with a standard deviation of 8
minutes. Assume that the waiting times are normally distributed. Using the 5%
significance level, can you conclude that the current mean waiting time of a UWI
student for a Subway sandwich is different from 22 minutes? [10 marks]

(papercontinuesoverlea~

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Question 4.

a) Distinguish between the terms "population distribution" and "sampling

distribution". [3 marks]

b) In a recent study of undergraduate UWI students, 20% of them said they

do not work as hard as they should in school. Assume that this is true of
all undergraduate UWI students. Find the probability that, in a random
sample of 100 students, 12 to 18 students do not work as hard as they
shouldin school..
[8 marks]

c) On average, 12.5 rooms stay vacant per day at a large hotel in Port of
Spain. Find the probability that on a given day exactly three rooms will be
vacant. [6 marks]

d) A newspaper article reported the mean daily sales of fish vendors is 480
dollars, and that 20% of fish vendors earn below 400 dollars daily.
Assume that the daily sales follow a normal distribution. Find the standard
deviation of the daily sales offish vendors. [8 marks]

Question 5.

a) The test scores for 300 Statistics students were entered into a computer,
analysed and stored in a file. Unfortunately, someone accidentally erased
a major portion of this file from the computer. The only information
available is that 30% of the scores were below 65, and that 15% of the
scores were above 90. Assuming the scores are normally distributed, find
their mean and standard deviation.
[10 marks]

(Question 5 continues overleaf)

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page 7

b) The regression model below is fitted using time series data for a Caribbean
country spanning the period 1979 to 1984:

IP = ex. Y + f3IG + 3

where IP = Private Investment,

Y = National Income and
IG = Public Investment.

The data are processed using MINITAB and the following output obtained:

MTB > Regress 'IP' 2 'Y' 'IG'.

Predictor Coef Stdev t-ratio P

Constant -1367.8 164.5 -8.3200 0.0000
Y 0.8526 0.0845 10.0900
IG -1.0336 0.1696 -6.0900

s = 32.96 R-sq = 90.3% R-sq(adj) = 88.8%

Analysis of Variance

SOURCE DF SS MS F P
Regression 2 131408 65704 60.48 0.000
Error 13 14122 1086
Total 15 145530

i) Write out the regression equation. [2 marks]

ii) Is f3 significantly different from -1 ? [4 marks]

ill) Is 'Ysignificantly different from 0 at the 5% signi!icance level?

[5 marks]

iv) Perform the F test making sure to state the null and alternative
hypotheses. [2 marks]

v) Give an interpretation to the term R-sq and comment on its value.

[2 marks]

END OF QUESTION PAPER