1
Economic Statistics
Econ 321
Homework 5:
due Tuesday June 24
Solve the following problems. Explain your logic and show your steps.
1.
The United Nations has conducted a survey of fifty workers in China and found that on average they work for
nine hours a day with a standard deviation of four. The Chinese government claims that the average workday is
eight hours or less.
a.
Is the survey enough to doubt the validity of the claim from the Chinese government?
b.
Make a relevant graph and use it to explain your logic.
c.
What is the pvalue of test?
2.
The PG County conducts annual surveys with twentyfive randomly assigned members of the community to
evaluate their perception of safety. If the person claims that the criminal activity has not changed when
compared with last year his answer receives a score of one hundred. If the persons believes that it has increased
x% his answer receives a score of one hundred plus x. If he thinks it has fallen by x% his answer receives a score
of one hundred minus x. The surveys have been conducted for many years and the historical average is one
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 Spring '11
 chugh
 Statistics, Statistical hypothesis testing, annual surveys, PG county

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