DEPTT. OF ECONOMICS QUESTION PAPER FINAL.10.07.2010 ECON- 502(3-0) Class: M.Sc.

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Attempt All Questions. Time Allowed Two Hour Teacher Name: Shahid Iqbal.
Attempt All Questions. Time Allowed Two Hour Teacher Name: Shahid Iqbal.

Q-1 State at least five properties of normal distribution especially including that relates area under curve
and mean±constant*S.D.

Q-2 Assume that the distribution of the ages of a group of workers was normal, one wished to test his
belief that the variance was 16. While considering a sample of 31 workers, the sample variance was
computed as 20. Test the significance of population variance at 5% significance level and also Construct
95% confidence interval for the population variance provided  .025  46. 979 and  .975  16. 791.
2 ( 30) 2 ( 30)

Q-3 A population consist of 1, 3, 5, 7, 9 values only. Draw all possible samples of size 2 without
replacement and prove that:
(i) Sample mean is unbiased estimator of population mean μ.
(ii) Sample variance s2=∑(x-x¯)2/n-1 is a unbiased estimator of population variance σ2.

Q-4 To verify whether a course in Statistics improved performance, a similar test was given to 7
participants both before and after the course. The original grades recorded in the alphabetical order of the
participants were X (=before):44, 40, 61, 52, 32, 44, and 72 and that for Y (=after):53, 38, 69, 57, 46, 39,
and 78. (Use 5% level of significance)
(i) Was the course successful, as measured by performance by the test? Consider these 7 participants as
sample from one population. Also find 90% confidence interval for mean. (t6,0.05 =1.943)
(ii) Was the course successful, as measured by performance by the test if the tests were not considered
paired? Consider these 7 participants as sample from two normal populations. Also find 90% confidence
interval for mean. (t12, 0.05 =1.782).

Q-5 Data on, X = individuals experience in years and Y =individuals weekly income in Rs (000)
X: 5, 2, 7, 2, 5, 2, and 7; Y: 4, 1, 7, 2, 5, 3 and 8
(i) Fit a regression line to measure the effect of individual’s experience on weekly income and interpret
the results. (ii) Show that ∑ei =0 (iii) compute σ.

Q-6. Test the significance population regression coefficient for evidence computed in Q-5(i) and
construct 95% confidence interval for the regression coefficient provided (t5,0.05 =2.571).

Q-7 Calculate ryx from values in Q-5 above and interpret the results; and test the significance population
correlation coefficient provided (t5,0.05 =2.571).

.Q-8 Predict weekly income for eight experience years and find a prediction interval for the new value of
weekly income when the experience years are eight.