Nidhiya Menon Brandeis University

Econ 83a - Statistics Fall 2012

PROBLEM SET 1
(DUE IN CLASS ON SEPTEMBER 19. FOR FULL CREDIT, SHOW ALL YOUR WORK.)

1. U.S. Unemployment statistics are obtained through the Current Population Survey (CPS), a sample of about 100,000 adults conducted monthly by the U.S. Census Bureau. Like the Gallup poll, it is a combination of multistage and other kinds of random sampling that altogether provides about the same accuracy as simple random sampling. In July 1987, the sample gave roughly the following figures for the noninstitutional population aged 16 and over: Employed Unemployed Outside the labor force Total 62690 4080 33230 100000

a. The participation rate is the proportion who are in the labor force, that is, who are employed or looking for employment (unemployed). Construct a 95% confidence interval for the participation rate for the entire U.S. Population. b. The unemployment rate ignores those outside the labor force, and is calculated as a proportion of only the total number employed + the total number unemployed. Construct a 95% confidence interval for the unemployment rate. c. If the quoted rate of unemployment went down from 5.8% to 5.7%, does this mean the actual rate dropped by 0.1%?

2. Where n is the sample size and a. Show that the total (

x ) can be obtained by multiplying the mean and the sample size.

x = 100 and y = 110. Then the samples were pooled into one large

x is the mean

b. Two samples had means of

sample, for which the mean z was calculated. What is z if the sample sizes are: i. n 1 = 30, n 2 = 70 ii. n 1 = 50, , n 2 = 50

3. The annual tractor output of a multinational firm in seven different countries was as follows (in thousands): 6, 8, 6, 9, 11, 5, 60 a. Graph the distribution, representing each output as a dot on the X-axis. b. What is the total output? What is the mean? The median? The mode? Mark these three centers on the graph. In view of the skewness, are they in the order you expect? c. For another firm operating in 10 countries, output (in thousands) had a mean of 7.8 per country, a median of 6.5, and a mode of 5.0. What is the total output?

4. In a large American university, a random sample of female professors gave the following annual salaries (in thousands of dollars): 8,9,10,12,16 a. Find the median, mean, and range. b. Calculate the MAD, MSD, variance, and standard deviation.

5. The temperature inside an experimental solar heater was measured in four different spots (in degrees Fahrenheit): 238,227,220,235 a. Calculate the mean and standard deviation. b. If the temperatures had been measured in degrees Centigrade, what would the mean and standard deviation be? [Hint: If F and C represent a given temperature in Fahrenheit and Centigrade respectively, then C=(F-32) x 5/9]

6a. In a learning experiment, a subject attempts a certain task twice in a row. Each time his chance of failure is 0.40. Draw the probability tree, and then calculate the chance of exactly one failure. b. Repeat 6a if the subject attempts his task once more, for a total of three tries.

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