ECO452 October 2019

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NATIONAL OPEN UNIVERSITY OF NIGERIA

DEPARTMENT OF ECONOMICS
FACULTY OF SOCIAL SCIENCES
2019_2 EXAMINATION

COURSE TITLE: APPLIED STATISTICS


COURSE CODE: ECO 452
UNITS: 2
TIME ALLOWED: 2 HOURS
INSTRUCTION: ANSWER THREE (3) QUESTIONS. ANSWER QUESTION ONE
AND ANY OTHER TWO QUESTIONS. QUESTION ONE CARRIES 30 MARKS WHILE
OTHER QUESTIONS CARRY 20 MARKS EACH

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.

Months Morning (x1) Afternoon (x2) Evening (x3)


1 85 77 90
2 83 81 92
3 79 85 84
4 81 82 82
5 82 80 87
Determine the following from the table;
(i) Explained variation
(ii) Unexplained variation
(iii) Total variation
(iv) Is there any significant difference due to production session? Test at 5% level of significance.
(20 marks)
2a.Write short notes on the following components of time series
(i) Secular trend or long term movement
(ii) Seasonal variation
(iii) Irregular or residual variation
(iv)Cyclical variation (10 marks)
b. Given the following information about National Open University in the table below, compute
Laspeyre, Paasche and Fisher’s price index numbers for 1990 using 1986 as base year. (10 marks)

Price and Quantity of Commodities in National Open University

Commodit Quantities Prices


y
1986 1990 1986 19990
A 30 70 75 360
B 40 100 160 300
C 50 150 250 960
D 15 33 180 291

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

Average Monthly Production of Bituminous Coal


2008 50
2009 35.5
2010 43.0
2011 44.5
2012 38.9
2013 38.1
2014 32.6
2015 38.7
2016 41.7
2017 41.1
2018 33.8
(10 marks)

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)

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