Final exam 08 key

# Final exam 08 key - Dec 11 2008 Final ECON 240A-1 L...

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Dec. 11, 2008 ECON 240A- 1 L. Phillips Final Answer all five questions 1. (30) Using Titanic3, the data set for Project 1, 809 people perished and 500 people survived for a total of 1309. Figure 1-1 is a plot of the histogram for fare, in pounds sterling, for the people who perished, and Figure 1-2 is a plot of the histogram for fare for the people who survived. 0 100 200 300 400 0 40 80 120 160 200 240 Series: FARE Sample 1 809 Observations 808 Mean 23.35383 Median 10.50000 Maximum 263.0000 Minimum 0.000000 Std. Dev. 34.14510 Skewness 4.248942 Kurtosis 24.56307 Jarque-Bera 18085.07 Probability 0.000000 Figure 1-1: Histogram of Fare, in Pounds Sterling, for People Who Perished

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Dec. 11, 2008 ECON 240A- 2 L. Phillips Final 0 50 100 150 200 250 0 50 100 150 200 250 300 350 400 450 500 Series: FARE Sample 810 1309 Observations 500 Mean 49.36118 Median 26.00000 Maximum 512.3292 Minimum 0.000000 Std. Dev. 68.64880 Skewness 3.518007 Kurtosis 19.73316 Jarque-Bera 6864.669 Probability 0.000000 Figure 1-2: Histogram of Fare, in Pounds Sterling, of People who Survived a. Looking at two measures of central tendency, does fare appear to distinguish the two groups, those who survived and those who perished? The mean and median fare for those who survived are both more than twice the amount of the mean and median fare for those who perished. b. The statistics accompanying these two figures provide two separate measures of dispersion. Name these two measures and explain which you think is the most reliable and why that is the case. . Standard deviation and range. The standard deviation is likely more reliable since the range, i.e. the max – min can be influenced by outliers, especially the max in this case c. A measure of relative dispersion, different from the two quantitative measures referred to in part b, is the sample coefficient of variation. Calculate and report this measure for those who perished __ 1.46 ______ and for those who survived __ 1.39 ______. Does there appear to be much of a difference in relative dispersion between survivor fare and perished fare? Yes or no __ no ______. d. For which group is the fare distribution most skewed, perished or survived? _ perished _.
Dec. 11, 2008 ECON 240A- 3 L. Phillips Final What is used as a measure of skewness, the first central moment? Explain. The distributions of fare for both those who survived and those who did not are quite non-normal. There were 127 women who perished. Their distribution for fare in pounds sterling is displayed in the Box plot, Figure 1-3: Figure 1-3: Box Plot of Fare in £ for 127 Women who Perished on the Titanic BoxPlot 6.75 56.75 106.75 156.75 206.75 e. Comment on a salient feature of the distribution displayed in figure 1-3. _ outliers _____ 2. (30) After looking at the data in question 1, a statistician has an inspired idea. Why not regress fare for both those who survived and those that perished against a constant and a dummy or indicator variable that is one if the individual perished and zero otherwise, and see what happens. The results are shown in Table 2-1.

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