ECO452 October 2019
ECO452 October 2019
ECO452 October 2019
DEPARTMENT OF ECONOMICS
FACULTY OF SOCIAL SCIENCES
2019_2 EXAMINATION
1a. Given a random sample of 20 taken from a normal distribution with mean 90 and variance 25.Find
the probability that the mean is greater than 101. (5 marks)
b.A coin is tossed 90 times, find the probability that tail will appear between 35% and 55%. (5 marks)
c.The information below relates to quantities of groundnut produced by Olasco farm Nigeria Ltd. The
production data are normally distributed with equal variance in the 3 sections for 6 months.
3a.The table below shows the average monthly production, for a certain country of bituminous coal in
millions of kilogrammes for the years 2008-2018. Construct a 3 year moving average
b.Multiple regression analysis is used for testing hypothesis about the relationship between dependent
variable and independent variables and used for prediction or forecasting. Discuss the assumptions
of multiple regression? (10 marks)
4.The quantity demanded for clothing denoted by Y is thought to be a linear function of price (X 1) and
income (X2). A sample of 6 pairs of price and income produced the value of quantity demanded shown
in the table below
Quantity demanded and price for cloth
Y X1 X2
40 9 8
10 12 10
35 6 6
25 10 11
30 9 8
45 14 7
(a) Find the least square regression equation of Y on X1 and X2; if Y = β0 + β1X1 +β2X2 + µ.
Where E(µ)=0 (15 marks)
(b) Forecast the quantity demanded when price (X1) and income (X2) are 54 and 9. (5 marks)
5. A population consists of four (4) members 3,7,11,15. Consider all possible samples of size of
two
that can be drawn without replacement from this population.Find
(i) Population mean
(ii) The population standard deviation
(iii) The mean of the sampling distribution of means
(iv)The standard deviation of the sampling distribution of means.(20 marks)