AK1_230

# AK1_230 - ECO 230 Economic Statistics Answer Key to...

This preview shows pages 1–4. Sign up to view the full content.

ECO 230 Marianna Kudlyak Economic Statistics Spring 2007 Answer Key to Homework #1 Total points: 10. Graded exercises: Ex.1 (2 points), Ex.5 (2 points), Ex. 8 (2 points). 4 points were added for the presence of the remaining 5 exercises. Ex.9 was not graded. Exercise 1. Newbold, Carlson and Thorne, Problem 2.37 (parts a, b, c) p.31: The accompanying table shows test scores of 40 students. 54 56 56 59 60 62 62 66 67 68 68 70 70 73 73 73 75 77 78 79 79 81 81 82 83 83 85 86 86 88 89 89 90 90 91 93 93 94 95 98 Answers vary. One possibility is to use five classes with width of 10. a. If the first class is 50 less than 60, the following results: Classes Frequency 50 < 60 4 60 < 70 7 70 < 80 10 80 < 90 11 90<100 8 b. The cumulative frequency distribution is: Scores Cumulative Frequency < 60 4 or 10.00% < 70 11 or 27.50% < 80 21 or 52.50% < 90 32 or 80.00% <100 40 or100.00% c. 0 2 4 6 8 10 12 60 70 80 90 100 Scores Frequency 0% 20% 40% 60% 80% 100%

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
Exercise 2. Newbold, Carlson and Thorne, Problem 2.44 p.37. The relationship appears to be negative; however there is significant variability in delivery time at each of the three shipping costs – regular, \$3; fast, \$5; and lightning, \$10. Higher prices are associated with fewer days to deliver, i.e., faster delivery time. Exercise 3. Newbold, Carlson and Thorne, Problem 2.63 p.44. a) Cross table b)
Exercise 4. Newbold, Carlson and Thorne, Problem 3.28 p.64. Exercise 5. The Firm’s Cost of Capital. The firm’s cost of capital, a concept from corporate finance, is computed as a weighted average. The idea is that a firm has raised money by selling a variety of financial instruments: stocks, bonds, commercial paper, and so forth. Since each of these securities has its own rate of return (a cost of capital to the firm), it would be useful to combine and

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

## This note was uploaded on 06/09/2008 for the course ECO 230 taught by Professor Kudlyak during the Spring '08 term at Rochester.

### Page1 / 5

AK1_230 - ECO 230 Economic Statistics Answer Key to...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online