ECO220Y1 Midterm: ECO220Y1Y UTSG Term Test 3 220 JAN15
Term Test #3, ECO220Y1Y, January 30, 2015, Prof. Murdock:
You have 110 minutes. Keep these papers closed on your desk until the start of the test is announced.
This test has 12 pages plus the aid sheets.
Once the test begins, you may detach the aid sheets and statistical tables (Standard Normal and Student ݐ) from the end
of this test. Aid sheets and statistical tables will not be collected.
There are 5 written questions with varying point values worth a total of 100 points.
Write your answers clearly, concisely, and completely below each question.
Show your work and make your reasoning clear.
Fully label all graphs.
Apply your understanding to the specific questions asked. Offer context-specific explanations rather than generic
definitions or quotes from class or the book. Show that you can successfully apply your understanding to the specific
circumstances presented.
A guide for your response ends each question to let you know what is expected: e.g. a quantitative analysis, a graph,
and/or sentences.
If the guide asks for a fully-labeled graph, it is required. (In other words, failing to include a fully-labelled graph when it is
requested in the guide will result in substantial lost points.)
For questions with multiple parts (e.g (a) – (c)), attempt each part even if you had trouble with earlier parts.
Pages 11 and 12 give extra space: use this only if necessary and clearly indicate the question number and make a clear
note in the original space directing the grader to it.
Unless otherwise specified, you choose the significance level. (If there are no special considerations, you may choose
a 5% significance level.)
Q1 Q2 Q3 Q4 Q5 Raw Total Percent
Mark
Point Value: 20 24 20 26 10 100
Points Earned:
Last Name:
First Name:
Student #:
Term Test #3, ECO220Y1Y, January 30, 2015 Page 2 of 12
(1) [20 pts] Consider two unrelated questions derived from Test #2, which the class wrote on November 28, 2014.
(a) [8 pts] Consider a 20 die-roll Monte Carlo simulation. In each simulation draw, 20 fair dice are rolled and the sample
median is computed. 500,000 simulation draws are used. Below is a STATA summary of the simulation results.
Sample Median
-------------------------------------------------------------
Percentiles Smallest
1% 2 1
5% 2.5 1
10% 3 1 Obs 500000
25% 3 1 Sum of Wgt. 500000
50% 3.5 Mean 3.499456
Largest Std. Dev. .6615879
75% 4 6
90% 4 6 Variance .4376986
95% 4.5 6 Skewness .0046752
99% 5 6 Kurtosis 2.829294
Fully explain the multiple-
choice question to the
right. Highlight the key
course concept it is testing.
Explain why the correct
choice is correct and why
each other choice is wrong.
Answer with 4 – 6
sentences.
If the Monte Carlo simulation is repeated but this time each sample has 100
observations (i.e. 100 dice rolled) instead of 20, which should you expect to INCREASE
in the new STATA summary of the simulation results for the sample median?
(A) the 5th percentile
(B) the 50th percentile
(C) the 95th percentile
(D) the standard deviation
(E) the interquartile range
Term Test #3, ECO220Y1Y, January 30, 2015 Page 3 of 12
(b) [12 pts] Wait time for the “Airport Rocket” bus (X) is Uniformly distributed from 0 to 10 minutes. An airport monitor
records wait times for 21 randomly selected travelers. (The chosen sampling procedure ensures that the independence
assumption is reasonable.) What is the chance that the sample mean wait time is less than 4 minutes? Answer with a
quantitative analysis and a fully-labeled graph that illustrates the answer and where the units on the x-axis are minutes.
27
ECO220Y1 Full Course Notes
Verified Note
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Document Summary
Term test #3, eco220y1y, january 30, 2015, prof. murdock: Keep these papers closed on your desk until the start of the test is announced. This test has 12 pages plus the aid sheets. Once the test begins, you may detach the aid sheets and statistical tables (standard normal and student (cid:1872)) from the end of this test. Aid sheets and statistical tables will not be collected. There are 5 written questions with varying point values worth a total of 100 points. Write your answers clearly, concisely, and completely below each question. Show your work and make your reasoning clear. Apply your understanding to the specific questions asked. Offer context-specific explanations rather than generic definitions or quotes from class or the book. Show that you can successfully apply your understanding to the specific circumstances presented. A guide for your response ends each question to let you know what is expected: e. g. a quantitative analysis, a graph, and/or sentences.
