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Midterm

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York University

Economics

ECON 2500

Wai Ming Ho

Fall

Description

Section 4J0-Thursday
Final Exam
Version 1-Green Color
(2 hours 30 minutes in length)
(Print) Last name: ____________________________
(Print) First name: ____________________________
Student number: ____________________________
PLEASE DO NOT OPEN UNTIL INSTRUCTED TO DO SO.
Please read the instructions below before you begin writing.
1. Before you begin writing, please print your name and student number in the
space provided above.
2. Please check that the color of your final exam paper is different from the paper of
the persons seated on either side of you. Please raise your hand if you find you
have the same color test paper as the one next to you. Failure to inform the
professor of this matter will result in a grade of ZERO.
3. Please do not remove the staple or detach the pages during the exam.
4. Please read the questions carefully. The same table of data may be used for
several questions.
5. There are 6 questions in this exam and all questions are required.
6. All cellular phones must be turned off and stored away from the testing area.
If a cellular phone is found in the testing area, you will receive zero for this
exam.
7. For all questions, only your numeric answer with the appropriate
symbol and unit will be marked. It may be necessary to show how
you arrived at your answer.
Marks
Earned
Question 1 (14 Marks)
Question 2 (14 marks)
Question 3 (5 marks)
Question 4 (5 marks)
Question 5 (28 marks)
Question 6 (22 marks)
TOTAL (Total marks for the
test 88)
Page 1 of 9 Question 1 (14 marks, 2 marks each if not stated)
You, the manager of an accounting firm in Toronto, are interested in the length
of the lunch break for the employees if they have more than an hour of lunch
break. The following random sample on the length of time employees took for
their lunch break was summarized. Use a 0.05 level of significance to test if
the lunch break is longer than an hour. Assume that the population standard
deviation is known to be 17.95.
Time in Minutes Frequency
40 and under50 5
50 and under 60 21
60 and under 70 34
70 and under 80 13
80 and under 90 6
90 and under 100 2
1) What is the point estimate of the mean length of the lunch break?
2) {4 marks} Using a standardized test statistic, test the hypothesis.
3) Using a P-value, test the hypothesis.
4) Using a confidence interval estimation procedure, test the hypothesis.
5) With a 0.01 level of significance, discuss if the tests and confidence interval
estimation approach shown above could reach different conclusions. Explain
why.
6) What sample size should be taken if the error will not be more than 1.5.
Question 2 (14 marks, 2 marks each if not stated)
Page 2 of 9 The reliability of two types of machines used in the same manufacturing process
is to be tested. The first machine failed to operate correctly in 45 out of 300
trials while the second type failed to operate correctly in 50 out of 250 trials.
1) What is a point estimate of the difference between the population proportions for
these machines?
2) What is a point estimate of the pooled estimate of the population proportions?
3) State the null and alternative hypotheses for a two-tailed test.
4) Compute the test statistic to test the hypothesis above.
5) What is the corresponding critical value? Use a 0.05 level of significance.
6) Use the p-value to test the hypothesis.
Page 3 of 9 7) Use the confidence interval estimation procedure to see if it supports your test
conclusion.
Question 3 (5 marks)
Allied Corporation wants to increase the productivity of its line workers. Four
different programs have been suggested to help increase productivity. A sample of
20 employees has been randomly assigned to one of the four programs and their
output for a day’s work has been recorded. You are given the results below.
Assuming the equal variance test if the programs increase the productivity of its line
workers.
Use α = 0.05.
Program A Program B Program C Program D
150 150 185 175
130 120 220 150
120 135 190 120
180 160 180 130
145 110 175 175

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