MGEB12H3 Study Guide - Midterm Guide: Hon30 Gauge, Type I And Type Ii Errors, Point Estimation
3 Jun 2018
School
Department
Course
Professor
1
Division of Management
University of Toronto at Scarborough
ECMB12H3S Quantitative Methods in Economics II, Section L30
January – May 2002
Dr. Yu
Test 2
Date: Thursday, March 21, 2002
Time allowed: Two (2) hours
Aids allowed: Calculator and one aid sheet (two 8.5”x11” pages) prepared by
student.
Notes:
• This test consists of 19 questions in 13 pages including this cover page.
• It is the student’s responsibility to hand in all pages of this test. Any missing page
will get zero mark.
• Statistical tables are provided separately. Do not hand in the tables. Only hand in
your test papers.
• Show your work in each question in Part II.
• This test is worth 30% of your course grade.
Print Last Name: Solution
Given Name(s):
Student Number:
Do not write on the space below, for markers only
Page Question Total Mark
2-5 1-15 45
6-7 16 14
8-9 17 14
10-11 18 14
12-13 19 13
Total 100
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2
Part I. Multiple Choice. 3 marks in each question. No part mark.
Circle only one answer. If there are more than one correct answer, circle the best one.
Questions 1-4. Use the following information.
An insurance company will offer discounts on its life insurance policies to
nonsmokers if the proportion of nonsmokers suffering heart disease is
significantly lower than that of the smokers. As part of their study, the company
selects two large random samples of nonsmokers and smokers independently.
The sample of 200 nonsmokers shows that 5% of them suffer heart disease.
1. Suppose the sample of smokers shows that 8% of them suffer heart disease, and
the 95% confidence interval for the difference in population proportions is within
0.05. The sample size on the smokers is closest to
(A) 165 √ (B) 179 (C) 208 (D) 217 (E) 250
Suppose the company ignores the result in question 1 and selects a random
sample of 200 smokers as well. This sample shows that 8% of the smokers suffer
heart disease. Use this additional information to answer questions 2-4.
2. A 95% confidence interval for the difference in proportion between nonsmokers
and smokers is closest to
√ (A) 0482.003.0 ±− (B) 0405.003.0 ±− (C) 0502.003.0 ±−
(D) 0514.003.0 ±− (E) 0533.003.0 ±−
3. The company wishes to test if the proportion of nonsmokers suffering heart
disease is significantly lower than that of the smokers. The p-value is closest to
(A) 0.01 (B) 0.05 √ (C) 0.1112 (D) 0.1522 (E) 0.3222
4. Denote the proportions of nonsmokers and smokers suffering from heart disease
by 1
p and 2
p, respectively. The company wishes to test the hypothesis
02.0: 210 =− ppH verses 02.0: 211 <− ppH . The value of the test statistic is
closest to
(A) -1.219 (B) –1.645 (C) –1.96 √ (D) –2.032 (E) –2.33
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3
5. A regression analysis of returns on stocks (Y) versus the ratio of book to market
value (X) shows an estimated regression as
XY 321.1 +=
∧
(2.5)
where the number in parentheses (2.5) is the standard error of the slope estimate.
The sample size used is n=10.
The correlation coefficient between X and Y is closest to
(A) 0.15 (B) 0.20 (C) 0.25 (D) 0.30 √ (E) 0.39
Questions 6-7. Use the following information.
A company wishes to estimate Sales Volumes (Y in $10,000) from Advertising
Expenditure (X in $10,000). A simple regression analysis from a random sample
of 10 observations is results the following partial ANOVA table.
Source SS df MS F
Regression
Error 72
Total 1600
The company assumes a positive relationship between Sales Volume and
Advertising Expenditure.
6. To test the significance of the model, the value of the t-test is closest to
(A) 1.96 √ (B) 3.7712 (C) 14.22 (D) 44.31 (E) 52.14
7. The correlation coefficient between Sales Volume and Advertising Expenditure is
equal to
(A) 0.49 (B) 0.7 (C) 0.64 √ (D) 0.8 (E) none of these
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Document Summary
Ecmb12h3s quantitative methods in economics ii, section l30. Calculator and one aid sheet (two 8. 5 x11 pages) prepared by student. Notes: this test consists of 19 questions in 13 pages including this cover page. It is the student"s responsibility to hand in all pages of this test. Any missing page will get zero mark: statistical tables are provided separately. Solution: show your work in each question in part ii, this test is worth 30% of your course grade. Do not write on the space below, for markers only. If there are more than one correct answer, circle the best one. An insurance company will offer discounts on its life insurance policies to nonsmokers is significantly lower than that of the smokers. As part of their study, the company selects two large random samples of nonsmokers and smokers independently. The sample of 200 nonsmokers shows that 5% of them suffer heart disease. the proportion of nonsmokers suffering heart disease.
