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    Tutorial 2 (Week 3) PDF

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    Max
    This document contains 6 problems related to business and economics statistics. It includes questions about calculating measures of central tendency and dispersion for different datasets, interpreting correlations between variables, and using linear regression to model relationships between variables. Specifically, it asks students to calculate and interpret means, medians, modes, ranges, variances, and standard deviations for various datasets, and to analyze how these statistics would change under different scenarios. It also includes questions about using scatter plots and correlation coefficients to analyze relationships between variables like housing prices and distance from the city center, and car prices and ages. Finally, it directs students to work through an additional problem from their textbook.

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    Tutorial 2 (Week 3) PDF

    Uploaded by

    Max
    69 views3 pages
    This document contains 6 problems related to business and economics statistics. It includes questions about calculating measures of central tendency and dispersion for different datasets, interpreting correlations between variables, and using linear regression to model relationships between variables. Specifically, it asks students to calculate and interpret means, medians, modes, ranges, variances, and standard deviations for various datasets, and to analyze how these statistics would change under different scenarios. It also includes questions about using scatter plots and correlation coefficients to analyze relationships between variables like housing prices and distance from the city center, and car prices and ages. Finally, it directs students to work through an additional problem from their textbook.

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    This document contains 6 problems related to business and economics statistics. It includes questions about calculating measures of central tendency and dispersion for different datasets, interpreting correlations between variables, and using linear regression to model relationships between variables. Specifically, it asks students to calculate and interpret means, medians, modes, ranges, variances, and standard deviations for various datasets, and to analyze how these statistics would change under different scenarios. It also includes questions about using scatter plots and correlation coefficients to analyze relationships between variables like housing prices and distance from the city center, and car prices and ages. Finally, it directs students to work through an additional problem from their textbook.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    69 views3 pages

    Tutorial 2 (Week 3) PDF

    Uploaded by

    Max
    This document contains 6 problems related to business and economics statistics. It includes questions about calculating measures of central tendency and dispersion for different datasets, interpreting correlations between variables, and using linear regression to model relationships between variables. Specifically, it asks students to calculate and interpret means, medians, modes, ranges, variances, and standard deviations for various datasets, and to analyze how these statistics would change under different scenarios. It also includes questions about using scatter plots and correlation coefficients to analyze relationships between variables like housing prices and distance from the city center, and car prices and ages. Finally, it directs students to work through an additional problem from their textbook.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    ECON1203

    Business and Economics Statistics


    Tutorial 2 Problems
    Week 3

    1. Using the car data from Question 2 in Tutorial 1:


    (a)
    Calculate the mean, median and mode for this sample of data and use these
    statistics to further describe the distribution of car ages.
    (b)
    If the largest observation were removed from this data set, how would the three
    measures of central tendency you have calculated change?
    2. For the following statistical population, compute the mean, range, variance and
    standard deviation: 3, 3, 5, 12, 13, 14, 17, 20, 21, 21.
    What would happen to each of the measures you have calculated if:
    (a)
    4 were added to each data point (observation)?
    (b)

    each data point were multiplied by 2?

    3. Migrant wealth.
    Suppose the Minister for Immigration is interested in research on the assimilation of
    migrant households (a household where the chief income-earner is foreign born). The
    Household, Income and Labour Dynamics in Australia (HILDA) survey is a
    representative survey of Australian households. Using 4,669 household observations
    for 2002 from HILDA, we find there are 3,567 households classified as Australianborn and 1,102 classified as migrants. One key consideration is how migrant
    households are doing in terms of wealth compared with Australian-born households.
    Using these data, we find the following:
    Summary statistics for net household wealth ($A)
    Australian-born

    Mean
    236,064

    10th percentile
    1,545

    Median
    123,020

    90th percentile
    560,006

    Migrant

    248,970

    1,720

    131,152

    524,372

    (a) What can you say about the distribution of net household wealth, for both
    Australian-born and migrant households, by looking at just the mean and the median
    figures?
    (b) More generally, what can you say about the distribution of wealth for migrant
    households compared to that for Australian-born households? In particular, which
    type of household has greater variation in wealth?
    (c) Suppose the minister has net household wealth of $600,000. What can you say
    about his or her financial circumstances relative to other Australian-born households?
    4. Sydney housing prices.
    Figure 3.2 depicts a scatter plot of Sydney-area housing prices versus distance from
    the CBD. The unit of observation is a suburb, price is the mean of the median price of
    houses sold in each suburb for two quarters (those ending in September and
    December 2002), and distance is measured in kilometers from downtown.
    (a) What would you expect the correlation to be between price and distance?
    (b) Does it appear that there is a linear relationship between the two variables?
    (c) What other key features of these data can be determined from the plot?
    Figure 3.2: House prices in Sydney suburbs versus distance to
    CBD
    6000000

    5000000

    Price $

    4000000

    3000000

    2000000

    1000000

    0
    0

    10

    20

    30

    40

    50

    60

    70

    80

    Distance to CBD (kms)

    5. Anzac Garage wants to develop guidelines for setting prices of cars according to the
    cars age. They hire a business consultant who chooses a sample of 117 second-hand
    passenger car advertisements collected from www.drive.com.au and retrieves data on
    the age and price of the cars.

    (a) The business consultant first calculates the correlation coefficient between age
    and price and finds it to be -0.278. Interpret this result.
    (b) Sketch what you think the scatter diagram from which this correlation coefficient
    was calculated might look like. Suppose the business consultant constructs a simple
    linear regression model using price as the dependent variable, and age as the
    independent variable. What do you think the estimated regression line might look like
    here? (We will return to this particular example later in the course and address this
    question more formally.)
    6. Work through problem 33 on page 164 of Sharpe (Chapter 4).

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