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Assignment 2 Question and Instruction

This document provides instructions for Assignment 2 of the Statistics for Business and Finance course. Students are asked to analyze sample data of 50 households to calculate confidence intervals and test hypotheses related to mean family size, weekly income, and weekly food expenditure. Regression analysis is also required to establish relationships between variables. Students must submit their assignment by the due date of October 16th, 2015 via the learning management system with their student ID and name in the filename. Various questions are provided involving confidence intervals, hypothesis testing, regression analysis, and comparing sample means to claims about population means from political leaders in Oslo, Norway and New York City.

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Shoaib Ahmed
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128 views

Assignment 2 Question and Instruction

This document provides instructions for Assignment 2 of the Statistics for Business and Finance course. Students are asked to analyze sample data of 50 households to calculate confidence intervals and test hypotheses related to mean family size, weekly income, and weekly food expenditure. Regression analysis is also required to establish relationships between variables. Students must submit their assignment by the due date of October 16th, 2015 via the learning management system with their student ID and name in the filename. Various questions are provided involving confidence intervals, hypothesis testing, regression analysis, and comparing sample means to claims about population means from political leaders in Oslo, Norway and New York City.

Uploaded by

Shoaib Ahmed
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Statistics for Business and Finance (BUS5SBF)

Semester 2, 2015
Assignment 2
Instructions:
1. This assignment should be completed individually and is worth 15% of the total
assessment.
2. Use the data from your Assignment 1, a sample size of 50 households without
replacement from a population of 1000 households in the local community. The data
consists of the Weekly Income (WI), Weekly Expenditure on Food (WEF), the Highest
Level of Education in the Household (HLE), the Family Size (FS), and the Gender of
the Head of the Household (G). Use SPSS or EXCEL for computation ONLY.
3. Submission is online. Make sure you follow the instructions otherwise your assignment
will not be accepted.

DUE DATE: 16th October 2015 by 5 PM


(10% penalty per day)
SUBMISSION INSTRUCTIONS:
Submit your assignment by uploading your assignment file (ONLY ONE
MICROSOFT WORD FILE or PDF; DO NOT ATTACH ZIP FILES) via
LMS (Moodle) on BUS5SBF website under Extra Files (Assignment 2
submission link) and make sure the filename reads as follows: STUDENT ID
STUDENT NAME (eg. 12345678 John Smith). The date and time you upload
your assignment will represent the date and time you hand in your assignment.
STATEMENT OF AUTHORSHIP SHOULD BE ATTACHED WITHIN
THE SAME FILE. (TURINITIN REQUIREMENT)
Please do not forward your assignment to your Tutor or lecturer via e-mail Just submit on LMS

Answer the following questions: (100 Marks in total)


1. Provide 95% confidence interval estimates for the mean FS (FS)
WEF (WEF) and WI (WI) for the population of 1000 households
based on your selected sample of size 50 households. (15 Marks)

2. Test the following Hypothesis that the population average


(i) Family Size is three.
(ii) WI is at least $500.
(iii)

WEF is greater than $300

Against a suitable alternative at the 10% level of significance.


What can you conclude? (15 Marks)

3. Estimate the following least square regression lines and explain


the meaning of the y-intercept (b0) term and the estimate of slope
coefficients (b1) in (i) and (ii) below but (b1 & b2) in (iii) :
(i) WEF on WI
(ii) WEF on FS
(iii) WEF on WI and FS
(15 Marks)

4. Construct confidence intervals for the estimates of the slope


coefficients in (i) to (iii) of Question 3. Explain the meaning of
these confidence intervals and comment on your results about the
width of the confidence intervals, if sample size increases from
50 to 100. (10 Marks)

5. Find the values of the correlation coefficients and the coefficients


of determination, and explain their meaning for the 50 pairs of:
(i) WI and WEF values
(ii) WEF and FS values
(15 Marks)

For question 6 and 7 below please refer to the excel files (extra file
for assignment 2 on LMS)
6. In that excel file (Oslo tab), there is 50 sample data of Weekly
Income (WI), Weekly Expenditure on Food (WEF) of one of the
most prosper city in the world, Oslo, Norway. Prime Minister of
Norway Erna Solberg claimed that:
(i) The population average of Weekly Income (WI) for her city
is higher compared to your sample of 50 households.
(ii) The population mean of Family Size (FS) for her city is at
least the same with your sample of 50 households.
Based on the Erna Solbergs statement, perform the analysis on
hypothesis testing with level of significance of 5%. Do you think
Erna Solbergs statement is true?
There are few assumptions that you may need to put in your mind,
when you perform this test:
A. Populations for both of your sample data and OSLO are
normally distributed and samples are independent.

B. Population variances for Weekly Income (WI) are unknown


and unequal.
C. Population variances for FS are unknown and equal.
(20 Marks)

7. As one of the largest city in USA, New York also known as the
food city. In this city people spend so much money in food, and
Bill de Blasio, Mayor of New York believe, that the average
amount of weekly food expenditure (WEF) spent by households
is equal with your sample data. In order to prove that he collects
a random sample of 50 households data of his city. (The data is
attached on extra file for assignment 2, New York tab).
Based on the Bill de Blasios statement, perform the analysis on
hypothesis testing with level of significance of 5%. Do you think
Bill de Blasios statement is correct?
You may consider the following assumptions while performing
this test:
A. Populations for both of your sample data and New York are
normally distributed and samples are not independent.
B. Population variances of Weekly Food on Expenditure (WEF)
are unknown and unequal.
(10 Marks)

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