120PM11 - Midterm 1 Practice Problems Econometrics 120A 1...

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Midterm 1 Practice Problems - Econometrics 120A 1. The Big Mac Index is annually compiled by “The Economist” to compare exchange rates across different countries. The following is a sample of such list, containing the price of a Big Mac in US Dollars for a number of different countries. Country Price in US$ Indonesia 2.05 Norway 7.90 Iceland 6.00 Malaysia 1.70 Latvia 3.50 (a) What is the average price in dollars of a Big Mac? (b) What is the median price in dollars of a Big Mac? (c) Is your answer to (b) the 50 th percentile of the sample? Is there a number that is the 50 th percentile of this sample? (d) The current US$-Euro exchange rate is 0.75 (that is 1 Dollar buys you 0.75 Euros). What is the average price of a Big Mac in Euros? (e) The standard deviation of the price of a Big Mac in US$ is 2.66. What is the variance of the price of a Big Mac in Euros? 2. Suppose the number of miles per gallon that you can get on a Toyota Prius is normally distributed with mean 45 and standard deviation 5.
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