Business and Economic Statistics A

Order Description
1. Plot a histogram of wages using your sample. Explain how you have chosen the
number of bins for your histogram and remember to label the axes. Comment
on the information that the histogram provides. [4 marks]
2. Calculate the sample mean and sample standard deviation of wages. Provide an
interpretation of the two calculated sample statistics. [3 marks]
3. Use your sample to calculate a 95% confidence interval for the mean population
wage. Show all the steps in your calculation. Be clear about the sampling
distribution assumptions you are making before you proceed to the calculation.
Provide an interpretation of the calculated confidence interval. [4 marks]
4. Use your sample to test whether the population mean wage is $6 an hour at
a 1% level of significance. Be sure to carry out all six steps of the hypothesis
test including a discussion of your sampling distribution assumptions and your
conclusion. Show all the steps in your calculations. [6 marks]
2
5. Use your sample to test the hypothesis that the mean wage for men is greater
than the mean wage for women at the 10% level. Again, be sure to carry out all
six steps of the hypothesis test including a discussion of your sampling distribution
assumptions and your conclusion. Show all the steps in your calculations.
[6 marks]
6. Comment on your results in 5. In particular, do you think you have found evidence
that men and women are paid different amounts on the basis of their
gender? Explain. [3 marks]
7. Use your sample to estimate the regression of wage on years of education (i.e.,
with wage as the dependent variable and education as the explanatory variable).
Provide an interpretation of the estimates of the intercept and the slope term in
the regression. [4 marks]