ALLAMA IQBAL OPEN UNIVERSITY, ISLAMABAD

(Department of Economics)

WARNING
1. PLAGIARISM OR HIRING OF GHOST WRITER(S) FOR SOLVING
THE ASSIGNMENT(S) WILL DEBAR THE STUDENT FROM AWARD
OF DEGREE/CERTIFICATE, IF FOUND AT ANY STAGE.
2. SUBMITTING ASSIGNMENT(S) BORROWED OR STOLEN FROM
OTHER(S) AS ONE’S OWN WILL BE PENALIZED AS DEFINED IN
“AIOU PLAGIARISM POLICY”.

Course: Statistics for Economist (804)

Level: MSc. Economics Semester: Autumn, 2020
Total Marks: 100
Pass Marks: 40
ASSIGNMENT No. 1
(Unit 1–4)
Q.1 a) What is the empirical relation between the mean, median and mode?
Explain. (08)
b) The sample age of 50 executive ages are given below. 35 46 63 69 54 50 62
68 38 40 55 43 42 10 59 45 44 57 47 48 46 43 64 49 36 59 60 42 60 42 38 51
50 66 63 57 56 51 38 61 54 50 44 48 69 64 37 56 53 62 52 (12)
i) Construct a frequency table and graph.
ii) Find the sample standard deviation
Q.2 i) Explain briefly the elementary properties of probability. (10)
ii) In a family of 3 children, what is the chance of (10)
a) At least one boy? b) At least 2 boys, given at least one boy?
c) At least 2 boys? d) At least 2 boys, given eldest is a boy?
Q.3 Describe the joint probability function with the help of a suitable example. Suppose
X and Y have the following joint distribution.

x y 0 1 2
0 .1 .3 .1
1 .2 .1 .2

a) Find p(x) and p(y); then by verifying that p(x)p(y) = p (x, y) confirm that X
and Y are independent. (10)
b) What is σXY? (10)

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Q.4 a) A bag contains 6 white and 4 black balls.2 balls are drawn at random. Find
the probability that they are of same colour. (10)
b) The weights of packages filled by machine are normally distributed about a
mean of 25 ounces, with a standard deviation of one ounce. What is the
probability that n packages from the machine will have an average weight of
less than 24 ounces if n = 1, 4, 16, 64? (10)

Q.5 On a certain Wednesday evening, a check was made of five different computer
rooms in campus residence units. The number of students using computer in the
five units was 28, 18, 34, 29 and 23 respectively.
a) Find the average number of users per room. (10)
b) Find the variance of this sample distribution. (10)

ASSIGNMENT No. 2
(Unit 6–9)
Total Marks: 100
Pass Marks: 40
Q.1 Explain the following desirable properties of estimators: (20)
a) Unbiased b) Efficiency c) Consistency

Q.2 a) What is meant by composite hypothesis? Also explain the following concepts
briefly: (10)
i) The power function ii) Type- I error
iii) Probe- value
b) Give x = 82, 02 = 15, and n = 100, test the null hypothesis that µ = 86. (10)
Q.3 Suppose we have data of seven families’ income / week and their respective
consumption / week (in rupees) as follows:

No. Families Consumption / Income / Week

Week (Rupees) (Rupees)
1. 4300 5000
2. 5600 6500
3. 4000 4500
4. 5800 7000
5. 6000 8600
6. 7500 9500
7. 7900 10000

a) Find the estimating equation for Y = a + bX + e, by the method of least

square. (12)
b) Find coefficient of correlation between Y and X. (08)
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Q.4 a) Explain the goodness-of-fit. (10)
b) Explain with a suitable example, how Laspeyres price index differs from a
simple arithmetic average of price relatives. (10)

Q.5 a) Construct a 90% confidence interval forπ, the proportion of Republican

voters in the U.S., if there were 4620 Republican in a random sample of
12,000. (10)
b) If a 25 IQ scores from a certain population has s2 = 120, construct a 90%
confidence interval for the population σ2. (10)