Paper Topic:
quantitative economics
Quantitative economics Word count including questions : 2600 Excluding questions : 2000 Excluding tables : 1880 Calculate the mean , median , mode , variance and standard deviation of annual salary of these technicians . You can present summary statistics using excel , but you are also required to calculate these and show your work in the appendix (10 Marks Mean Mean is the average of given observations . The average annual salary of technicians is 56935 .71 . This is calculated with the help of following Mean Sum of salaries of 14 technicians / 14 797100 /14 56935 .71
p Median is the number of the middle set of given observations . In this case median is 56000
Mode is the most frequently occurring value of the given set of data . It is again 56000 which are repea (Y- /i-1 mean of Ys 2 .9 / 14-1
Standard Deviation helps in understanding how widely values are dispersed with the mean value or average value (Y- /i-1
Mean ) 56935 .71
Median 56000
Mode 56000
Variance
Standard Deviation 3464 .236
Plot a separate scatter diagrams of (i ) annual salary against years of experience (ii ) annual salary against years of post secondary school education , and (iii ) annual salary against gender . What kind of relationship each diagram present
Present the scatter diagrams in the appendix but comment on these separate relationships in your report (10 Marks
annual salary against years of experience
The linear expression of annual salary against years of experience represents a relationship between the salary an individual technician is receiving and the numbers of experience he has . Person with lesser numbers of years in experience is getting less salary as compared to the person with more experience
annual salary against years of post secondary school education , and
Technicians who have post secondary school education are fetching better salaries compared to their colleagues
annual salary against gender
On the basis of scatter diagram it can be inferred that Male technicians are earning better than that of their female counterparts . However it also depends on numbers of other factors like years of experience and education . Among the four top earning technicians there is one female with high post school education and 7 .5 years of experience
Assuming that annual salary Y and years of experience X1 , are linked by a linear relationship , using an appropriate computer package Excel estimate by Ordinary Least Square (OLS ) method the simple linear regression ?i
Write out the estimated regression equation . Draw the estimated regression line on your scatter graph . Clearly interpret your findings i .e . the coefficient estimates ?1 and ?1 . Conduct an appropriate significance test at 5 significance level I the slope coefficient ?1 to examine its statistical significance . Comment on your significance test result . Present the scatter diagram and computer print in the appendix (15 marks
Answer
The estimated linear equation for this question is
Let regression line is represented by
y ox some random noise
Therefore , Regression line is represented by
Y 748 .58X 52498
Intercept ?1 52498
Slope ?1 748 .58
Here regression equation corresponds to...
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