6.UNEMPLOYMENT CASE PRESENTATION.

Click Ankit Sancheti to edit Master subtitle style Abhiram Badri Narayan Chinnaraj Ganesh Kumar Yuvaraj Chowdry Chandramouli

5/23/12

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CASE BREIFING

The case describes the unemployment scenario in U.S. sample taken for the survey is 50 people. national mean length of time of unemployment was 14.6 weeks. mayor wants to estimate that the mean length of time the individuals have been unemployed in
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The The The

6 weeks.TO BE DISCUSSED??  Develop a 95% confidence interval estimate of the mean age of unemployed individuals in Philadelphia. a hypothesis test to determine whether the mean duration of unemployment in Philadelphia is greater than the national mean duration of 14. What is your conclusion? there a relationship between the age of an unemployed individual and the mean 5/23/12  Conduct  Is 33 . Use a 1% significance level for the test.

ESTIMATION – Q.5 % X2 =? 5/23/12 44 .6 47.5 % 2. No -1 Solution: n = 50 Pop SD = 11.5 % X1 =? MEAN = 36.94 years 47.5 % 2.

94/ √50 =1.69 5/23/12 5 .E = Pop.E) : S.69..Solution (Contd.E = 1.) To compute Standard Error(S.96 * 1. Tolerance = Z-score * S. SD/√n = 11.

) Estimate Interval = Mean ± Tolerance.91.Solution (Contd.6 ± 3. So.31 Therefore. X1= 33.29 X2 = 39.. = 36.95% confidence interval estimate 5/23/12 66 .

29 MEAN = 36.5 % X1 = 33.5 % 2.Solution (Contd.6 47.) n = 50 Pop SD = 11.5 % X2 = 39.94 years 47.5 % 2..91 5/23/12 7 .

HYPOTHESIS TESTING – Q. 2 n = 50 Pop SD = 9. No.92 weeks 50 % 49 % 1% Z critical 5/23/12 88 MEAN = 14.6 .

S.S. 5/23/12 99 . H1 : The mean duration of unemployment in Philadelphia is greater than the mean duration of unemployment in U.Solution (Contd..) H0 : The mean duration of unemployment in Philadelphia is same as the mean duration of unemployment in U.

) To compute Standard Error(S.E = Pop. Tolerance = Z-score * S.E = 2. SD/√n = 9.40.40 5/23/12 10 .92/ √50 =1.E) : S.33 * 1..Solution (Contd.

5/23/12 11 .) Z critical = Mean + Tolerance.26 = 17. = 14..Solution (Contd.6 + 3.86.

86 5/23/12 12 .92 weeks 50 % 49 % 1% MEAN = 14.6 Z critical = 17..) n = 50 Pop SD = 9.Solution (Contd.

Hence.54 which is in the acceptance region lying between 14. 5/23/12 13 .6 and 17.86.Conclusion The mean of Philadelphia is 15. we accept the ‘Null Hypothesis’(H0 ).

Analysis of Type I and Type II error Assuming H0 is true and if we reject it Type I error occurs. The consequence is that there are more number of job opportunities and the unemployment rate falls down. The consequence is that measures will not 5/23/12 be taken to reduce the unemployment 14 . Assuming H0 is false and if we accept it Type II error occurs.

There is a relationship between the age of an unemployed individual 5/23/12 15 . Is there a relationship between the age of an unemployed individual and the mean number of weeks of unemployment? Answer: Yes.QUESTION 3.

Explanation: AGE INTERVAL 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 AVERAGE NO.75 20. OF WEEKS UNEMPLOYED.83 18.67 5/23/12 30.14 10.44 12.67 19. 9.16 16 .67 9.

16 Above 54 5/23/12 17 .Comparison Average = 30.

5/23/12 18 . The average number of weeks unemployed below 40 is 10.Conclusion The graph clearly depicts there is a direct relationship between the age and the number of weeks unemployed .5. The average number of weeks unemployed between 40 to 54 is 19.72.

.Conclusion (Contd. Age = Unemployment Duration 5/23/12 19 .) Henceforth we concluded that as the age increases the duration of the person being unemployed is high.

Questions??? 5/23/12 20 .

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