Download ECN 208-2011-2012

UNIVERSITY OF ILORIN
FACULTY OF BUSINESS AND SOCIAL SCEINCES
DEPARTMENT OF ECONOMICS
RAIN SEMESTER EXAMINATION, 2011/2012 SESSION
COURSE CODE: ECN 208; COURSE TITLE: STATISTICS IV; CREDIT UNIT: 2
INSTRUCTION: Answer Question 1 and any other two; Time Allowed: 2 Hours
Year
1. The Asset turnovers, excluding cash and short-Term investments, for the ABC
Company from 2000 to 2010 are shown the table below;
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Asset
Turnovers
1.11
1.28
1.17
1.10
1.06
1.14
1.24
1.33
1.38
1.50
2010
1.65
a. Determine the Least Square trend equation
b. Calculate the three-Year Moving Average
c. Plot the original data, the least square trend and the Three-Year Moving Average and explain
the observed behaviours of the respective graphs representing the least square trend and the
Three-Year Moving Average in relation to original behaviour of the series.
d. Discuss the limitations of using least square trend line to predict the future values of time
series.
2. The manufacturer of a patent medicine claimed that it was 90% effective in relieving an
allergy for the period of 8 hours. In a sample of 200 people who had allergy, the drug
provided relief for 160 people.
a. Determine whether the manufacturer’s claim is legitimate by using 0.01 as the level of
significance.
b. Find the P-value of the test and state its implication on the manufacturer’s claim.
c. Explain five ways of minimising the probability of committing Type I Error when testing a
hypothesis.
3. A sample of 36 television tubes produced by Nigerchen Nigeria LTD showed a mean lifetime
of 1200 hours and standard deviation of 100 hours.
a. Estimate the mean of the population of all television tube produced by the company,
and find 95% and 99% confidence limits for the mean lifetime of all the television
tubes produced by the company.
b. Describe the characteristics of an Unbiased and efficient estimator of a population
parameter.
4. Explain the main components of Time Series and describe step by step the how the seasonal
Index can be determined using Ratio to Moving Average Method.
5. a. What is an index number?
b. List five major characteristics of a Consumer Price Index (CPI) and Explain with
examples, its significance in making macroeconomic policies.
c. Assume the CPI for Nigeria in 2010 is 270, determine the purchasing power of N1000 in
2010, taking year 2000 as the base year.