Technical University of Munich MA9712 Statistics for Business Administration

Chair of Mathematical Finance Summer Semester 2018

PD Dr. Aleksey Min, Dr. Carlos Amendola, Miriam Jaser Solution Sheet 1: Tutorial Exercises

13 April 2018

Solutions to the Tutorial Exercises

Exercise T.1

Within the framework of the Munich Rent Report several variables were surveyed. Discuss the
variables net rent (in Euro), living size (in m2 ), building age (in years), central heating (yes/no), hot
water supply (yes/no), good location (yes/no), and upscale bathroom equipment (yes/no) regard-
ing their variable type (i.e. nominal, ordinal, metric). In addition, decide whether the variables are
quantitative or qualitative and whether they are discrete or continuous variables.

Solution:

The following variables should be discussed: net rent, living size, building age, central heating, hot water
supply, good location, and upscale bathroom equipment.

The classification of the variables is as follows:

nominal ordinal metric

(qualitative, discrete) (qualitative, discrete) (quantitative, continuous)
central heating good location net rent
hot water supply upscale bathroom equipment living size
building age

Exercise T.2

A statistical consulting company is charged with the following topics:

a) quality tests of wine from Koblenz,

b) quality inspections of condom production,

c) analysis of addiction behavior of youths.

As head of the data collection department, you should decide between a full survey and a sample
survey to collect the required data. Give reasons for your decisions.

Solution:

a) The wine gets ”destroyed” by testing it, hence only a sample survey makes sense.

b) In order to guarantee the quality, a full survey is essential. Therefore, a test process (an
appropriate machine) was developed in order to be able to test condoms without harming
them.

c) A full survey would be preferable here. However, because of cost reasons and lacking infor-
mation (who is actually addicted?), the survey has to be limited to a sample.