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 2: Homework (eTest)

20 April 2018

Solution to the Homework Exercise relevant for the eTest on Moodle

Exercise H.2

Sample exercise:

In June 2016, 18 TUM students were surveyed about their study course, their number of siblings,
and their income. The (fictitious) results are presented below.
Surveyresult

## Studycourse Siblings Income

## 1 Business Informatics 1 640
## 2 TUM-BWL 2 760
## 3 Electrical Engineering 3 860
## 4 Mathematics 1 770
## 5 Electrical Engineering 3 505
## 6 Electrical Engineering 3 1055
## 7 TUM-BWL 0 920
## 8 TUM-BWL 2 1025
## 9 Mathematics 0 440
## 10 Mathematics 1 965
## 11 Mathematics 1 700
## 12 TUM-BWL 0 1050
## 13 Business Informatics 1 900
## 14 Electrical Engineering 3 1015
## 15 Mathematics 0 820
## 16 Business Informatics 1 800
## 17 TUM-BWL 2 1020
## 18 Electrical Engineering 3 365

a) Of which (scale) type is the variable ”study course” (nominal, ordinal or metric)? (Choose
one of the three options and provide it exactly as it is given. Do not use any abbreviations or
symbols.)

b) What is the absolute frequency of the study course ”Electrical Engineering”?

c) What is the absolute frequency of the study course ”Mathematics”?

d) What is the absolute frequency of the study course ”TUM-BWL”?

e) What is the absolute frequency of the study course ”Business Informatics”?

f) What is the relative frequency of the study course ”Electrical Engineering”?

g) What is the relative frequency of the study course ”Mathematics”?

h) What is the relative frequency of the study course ”TUM-BWL”?

i) What is the relative frequency of the study course ”Business Informatics”?

1 (please look for the next page)

 j) Of which (scale) type is the variable ”number of siblings” (nominal, ordinal or metric)?
(Choose one of the three options and provide it exactly as it is given. Do not use any ab-
breviations or symbols.)

k) What is the absolute frequency of the value ”no siblings”?

l) What is the absolute frequency of the value ”one sibling”?

m) What is the absolute frequency of the value ”two siblings”?

n) What is the absolute frequency of the value ”three siblings”?

o) What is the relative frequency of the value ”no siblings”?

p) What is the relative frequency of the value ”one sibling”?

q) What is the relative frequency of the value ”two siblings”?

r) What is the relative frequency of the value ”three siblings”?

s) How many students have at most two siblings?

t) What percentage of students have at least two siblings? (Provide only the numerical result.
Do not use a % sign.)

u) What percentage of students have one or two siblings? (Provide only the numerical result. Do
not use a % sign.)

v) Calculate the empirical mean x18 of the variable ”income”.

w) Calculate the empirical median x̃0.5 of the variable ”income”.

x) Calculate the span (range) Sp of the variable ”income”.

y) Calculate the interquartile range IQR of the variable ”income”.

Solution:

From the table we get the following sequence of order statistics of the variable ”income”

sort(Surveyresult$Income)

## [1] 365 440 505 640 700 760 770 800 820 860 900 920 965 1015
## [15] 1020 1025 1050 1055

a) The variable X1 : ”study course” is a nominal variable.

b) The absolute frequency of the study course ”Electrical Engineering” is n1 = 5.

c) The absolute frequency of the study course ”Mathematics” is n2 = 5.

d) The absolute frequency of the study course ”TUM-BWL” is n3 = 5.

e) The absolute frequency of the study course ”Business Informatics” is n4 = 3.

f) The relative frequency of the study course ”Electrical Engineering” is f 1 = 0.278.

g) The relative frequency of the study course ”Mathematics” is f 2 = 0.278.

2 (please look for the next page)

h) The relative frequency of the study course ”TUM-BWL” is f 3 = 0.278.

i) The relative frequency of the study course ”Business Informatics” is f 4 = 0.167.

j) The variable X2 : ”number of siblings” is a metric (discrete) variable.

k) The absolute frequency of the value ”no siblings” is n1 = 4.

l) The absolute frequency of the value ”one sibling” is n2 = 6.

m) The absolute frequency of the value ”two siblings” is n3 = 3.

n) The absolute frequency of the value ”three siblings” is n4 = 5.

o) The relative frequency of the value ”no siblings” is f 1 = 0.222.

p) The relative frequency of the value ”one sibling” is f 2 = 0.333.

q) The relative frequency of the value ”two siblings” is f 3 = 0.167.

r) The relative frequency of the value ”three siblings” is f 4 = 0.278.

s) We are looking for the number of students with at most two siblings, thus
n1 + n2 + n3 = 4 + 6 + 3 = 13 .

t) We are looking for the percentage of students having two or three siblings. First, we derive
the relative frequency of this event, which is given by
f 3 + f 4 = 0.44444 .
Second, we convert the relative frequency to a percentage and get the result
44.444 .

u) We are looking for the percentage of students having one or two siblings. The relative fre-
quency for this event is given by the sum of f 2 and f 3 . Hence, the result is given by
100 · ( f 2 + f 3 ) = 50 .

v) Let X3 be the variable ”income” and x3,1 , . . . , x3,18 be the observed values. The empirical mean
(average) x3,18 of the variable ”income” is then given by

1 18
18 i∑
x3,18 = x3,i = 811.667 .
=1

w) Since n = 18 is even, the median x̃0.5 of the variable ”income” is given by

x̃0.5 = 840 .

x) The range is the difference between the maximum and the minimum. In this case it is given
by
Sp = x(18) − x(1) = 1055 − 365 = 690 .

y) The interquartile range is defined as the difference between the upper and the lower quartile.
Thus, we get
IQR = 1015 − 700 = 315 .