MidTerm_Jamie_Boyer - EC/315 Midterm Examination...

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EC/315 Midterm Examination Name:_Jamie Boyer______________________________________ Directions: This test is open-book and open notes and covers the content from weeks 1 through week 4 of EC/315. The test will be typed and submitted in the Dropbox marked Midterm Exam. The midterm is due the last day of Week 4. PROBLEM 1 (Weight 20 points). NBC TV news, in a segment on the price of gasoline, reported last evening that the mean price nationwide is $1.50 per gallon for self-serve regular unleaded. A random sample of 35 stations in the Milwaukee, WI, area revealed that the mean price was $1.52 per gallon and that the standard deviation was $0.05 per gallon. At the .05 significance level, can we conclude that the price of gasoline is higher in the Milwaukee area? Calculate the p- value and interpret. Ho: u < 1.50 H1>1.50 T=$1.52-1.50 =$2.37 $0.05/sr35 2(.5000-.4911)=.0178=p value Reject Ho and accept H1 PROBLEM 2: (Weight 20 points) . Suppose Babsie generated the following probability distribution: X p(x) 5 .25 7 .30 10 .25 12 .05 15 .15 a. Is this probability distribution discrete or continuous? Explain your reasoning. This probability distribution is continuous because it is a variable that can assume one of an infinitely large number of values within limitations. b. Calculate the expected value of X. Show your work!! u=.25(5)+.30(7)+.25(10)+.05(12)+.15(15)=1.25+2.1+2.5+.6+2.25=8.7
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This note was uploaded on 04/23/2011 for the course EC 315 taught by Professor Barcus during the Spring '10 term at Park.

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MidTerm_Jamie_Boyer - EC/315 Midterm Examination...

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