HW1
Due: November 8, 2021 (Midnight)
[Note: You are encouraged to work together. You need to show calculations as much possible.]
You need to work on the Questions 1 and 2 in Excel and EViews. You need to write or copy-paste from Excel or EViews. You will email the HW1 file, and the Excel and EViews files.
1.
Observations X Y
1 5 4
2 7 8
3 9 12
4 11 16
5 13 20

Calculate the following using Excel. Write answers here.

a. =445 b. c.

d. e.

f. g.

h. i.

2. Use the data from the CPS08 in Blackboard.
For the data series “ahe” (i.e. Average Hourly Earnings) find the following:
a) Create a Histogram in EViews then copy-paste here.
c) Calculate Mean, Variance and Standard Deviation in EViews then copy-paste here.

3. What is the probability of three heads if you throw three coins at the same time?

4. Suppose I assigned WSJ and NYT as reading references to my class. Now suppose 60% of my students read the WSJ, 50% read the NYT and 30% read both. Find the probability that a randomly selected student in my class reads at least one of them.
Also, find the probability that a randomly selected student in my class does not read either of them.

5. The probability distribution of the daily stock prices of google for last two months are as follows:
Closing Price (X) 1190 1210 1230 1250 1270 1290
P(X) 0.10 0.20 0.40 0.18 0.10 0.02

a. Find the expected price of the google share.
b. If you paid $400 for a google share then what is your expected profit or loss?

6. Assume that you work for New York Yankees and they wanted to get Jose Ramirez whose batting average is 0.28. You calculate the variance of his hits as 0.15. Then, what is the probability that he will have an average of 0.30 or over next season?

7. A company claimed that they found only a low percentage of flawed products in various stores in Connecticut. You went to the same stores and the store managers informed you their observations about the company’s products.
Stores Bridgeport Fairfield New Haven Hartford Stamford
Company Claim 5% 4% 6% 6% 3%
Manager Observations 8% 4% 10% 11% 4%

Run a Chi-square test to determine whether the company has made a valid claim here.

8. A online education company claims that a student will receive a coding job if they take company’s online coding bootcamp. You conducted a survey on students who attended or not taken the bootcamps and also learned whether they got a job or not. The survey results are below.
Got a Job No Job Total
Coding Bootcamp 204 350 554
No Bootcamp 195 101 296
Total 399 451 850

Using a chi-square test determine whether the company’s claim is valid (i.e. there is a relationship between the bootcamp and getting a job.)

9. Use the CPS08 data for the following two questions:
a. Find out whether the variances of average hourly earnings (AHE) for people with and without a Bachelor degree are equal.
b. Find out whether the mean of average hourly earnings (AHE) between Male and Female are equal.