Class Test 2
ECON 223
Total Marks: 20 Time: 1 hour
Q.1 Select the right option from all of the available options (1x6 = 6)
A. T-distribution has a wider tail than Z distribution because
a. The uncertainty of two random variables x and σ
b. The uncertainty of one random variables σ
c. The uncertainty of two random variables μ and s
d. None of the above
B. In Standard normal distribution, the value of median is
a. 1
b. 0
c. Does not have any median
d. It is not fixed and can take any value
C. The length of time a traffic signal stays green (nicknamed the "green time") at a
particular intersection follows a normal probability distribution with a mean of 200
seconds and the standard deviation of 10 seconds. Use this information to answer the
following questions. Which of the following describes the derivation of the sampling
distribution of the sample mean?
a. The means of a large number of samples of size n randomly selected from the
population of "green times" are calculated and their probabilities are plotted.
b. The standard deviations of a large number of samples of size n randomly selected
from the population of "green times" are calculated and their probabilities are
plotted.
c. The mean and median of a large randomly selected sample of "green times" are
calculated. Depending on whether or not the population of "green times" is
normally distributed, either the mean or the median is chosen as the best
measurement of center.
d. A single sample of sufficiently large size is randomly selected from the
population of "green times" and its probability is determined.
D. Suppose a large labor union wishes to estimate the mean number of hours per month a
union member is absent from work. The union decides to sample 468 of its members
at random and monitor the working time of each of them for 1 month. At the end of
the month, the total number of hours absent from work is recorded for each employee.
Which of the following should be used to estimate the parameter of interest for this
problem?
a. A large sample confidence interval for p.
b. A small sample confidence interval for p.
c. A small sample confidence interval for µ.
d. A large sample confidence interval for µ.
E. When the sample size increases, everything else remaining the same, the width of a
confidence interval for a population parameter will
a. Increase
b. Decrease
c. Remain unchanged
d. Not possible to tell
F. If James had a t-score of 1.2, explain what this value means in terms of the number of
hours of sleep he gets
a. James sleeps 1.2 hours less than the average person.
b. The number of hours James sleeps is 1.2 standard deviations below the mean.
c. James sleeps 1.2 hours more than the average person.
d. The number of hours James sleeps is 1.2 standard deviations above the mean.
Q. 2
Consider a sample of random variables: X1, X2, ..., Xn, where, (3)
n > 10,
E [Xi] = µ,
Var [Xi] =σ2 > 0 and,
The estimator =
i. Calculate the bias of ^µn
ii. Calculate the variance of ^µn
Ans:
i)
= {1/(n-10)} (n-10)E[Xi] - µ;
As n starts from i=11 and goes till n (see the notations in summation). So only all n-10 terms
are included.
= E[Xi] - µ. (in the question it is given that E [Xi] = µ; see above)
= µ - µ =0
ii)
= 1/(n−10)2 {(n − 10)} σ2
= σ2/n−10
Q3. (3)
A quality-control analyst wants to estimate the proportion of imperfect jeans in a large
warehouse. The analyst plans to select a random sample of 500 pairs of jeans and note the
proportion of imperfect pairs. If the actual proportion in the entire warehouse is 0.35, what is
the probability that the sample proportion will deviate from the population proportion by
more than 0.05?
Ans:
p = μ = 0.35 σ = √(0.35)(0.65)/500 = 0.0213
^
P(|P − p|>0.05 ) = P( P
^ < 0.30) + P( P ^ > 0.40)
=P
(Z<
0 . 30−0. 35
0 . 0213 ) (+P
Z>
0 . 40−0 . 35
0 . 0213 )
= 1 – 2TA(2.344) = 0.0190
Q4.
X has a probability density function as follows. (3)
Find the value of k and the distribution function of the random variable X. Use the function
with actual value of k to determine the probability of x such that P(0.5 ≤X≤1).
Ans:
Q5. (3)
In the Rugby World Cup 2019, a random sample of supporters were asked, “Which country
do you think will win the 2019 Rugby World Cup?”. The survey covered 7 countries and had
total 480 samples. But the surveyor also found that there are certain group of people all these
countries that are undecided. They survey team also made a category for the undecided
supporters separately consisting of all of the countries. They present the results of the
supporters as below;
Country Number of supporters who think their country will win
Australia 116
England 13
France 25
New Zealand 140
Western Samoa 50
South Africa 47
Wales 24
The team wants to calculate an interval for those people in terms of proportions who are
categorized as undecided. Help them set a confidence 90% interval.
Ans:
Q6. (2)
Poor Milhouse is hopelessly in love with Lisa. Unfortunately for Milhouse, Lisa does not
feel the same way. However, Milhouse remains hopeful, since on any given day
independently there is a 5% chance that Lisa smiles at him. Assuming that a month has 30,
what is the probability that Milhouse waits no more than two months to see a smile from
Lisa?
Ans:
Z-table
