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Exercises Chapter 6 XSTKE

This document contains 8 exercises related to parameter estimation of random variables in economics and business. The exercises involve estimating means, variances, and proportions using sample data and confidence intervals. For example, Exercise 4 asks the reader to estimate the mean number of hours university professors spend in departmental meetings using a sample of 20 responses and assuming the hours are normally distributed. Exercise 7 estimates the proportion of train travelers who fail to buy tickets based on a random sample of 400 travelers and 95% confidence interval.

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41 views2 pages

Exercises Chapter 6 XSTKE

This document contains 8 exercises related to parameter estimation of random variables in economics and business. The exercises involve estimating means, variances, and proportions using sample data and confidence intervals. For example, Exercise 4 asks the reader to estimate the mean number of hours university professors spend in departmental meetings using a sample of 20 responses and assuming the hours are normally distributed. Exercise 7 estimates the proportion of train travelers who fail to buy tickets based on a random sample of 400 travelers and 95% confidence interval.

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Yến Hải
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We take content rights seriously. If you suspect this is your content, claim it here.
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Lecturer: Nguyen Duong Nguyen, Mathematics Department, Faculty of Basic Science, FTU

Chapter 6. Parameter estimation of random variables


in economics and business
Exercise 1. Suppose two economists want to estimate the average household
expenditure on food and they use two unbiased estimators (and independent), U and
W. Since the second economist is less careful, the standard deviation of W is three
times larger than the standard deviation of U. To combine the two estimators to obtain
a common estimator of the average household expenditure on food, three ways are
suggested.
1 1
i) G1  U  W
2 2
3 1
ii) G2  U  W
4 4
iii) G3  (1)U  (0)W
a) Which of the above estimators is unbiased of the average household expenditure on
food?
b) Which of the above estimators is the best of the average household expenditure on
food?
Exercise 2. Let X and Y be two independent random variables, having the same
probability distribution, where E(X) = E(Y) = m is unknown, V(X) = 20 and V(Y) =
36. Let X be the sample mean of size 10 drawn from the population with the original
random variable X and Y be the mean of the sample of size 9 drawn from the
population with the original random variable Y. In the class of estimators
Z  a X  bY of m, find a and b such that Z is the most efficient estimator of m.
Exercise 3. Let two independent samples drawn from the same original random
variable X have a zero-one distribution with the parameter p, where the size of the first
sample is n1  8 and the size of the second sample is n 2  13 . Let f1 and f 2 be the
proportions of the first and second samples, respectively. In the class of linear
estimators f  f1  f 2 , find a and b to get the most efficient estimator of p.
Exercise 4. Among the most exciting aspects of a university professor’s life are the
departmental meetings where such critical issues as the color of the walls will be
painted and who gets a new desk are decided. A sample of 20 professors was asked
how many hours per year are devoted to these meetings. The responses are listed here.
Assuming that the number of hours spent at departmental meetings by a university
professor is a normally distributed random variable with a standard deviation of 8
hours. Estimate the mean number of hours spent at departmental meetings by all
professors. Use a confidence level of 90%.

14 17 3 6 17 3 8 4 20 15

7 9 0 5 11 15 18 13 8 4

1
Lecturer: Nguyen Duong Nguyen, Mathematics Department, Faculty of Basic Science, FTU

Exercise 5. How much money do winners go home with from the television quiz show
Jeopardy? To determine an answer, a random sample of winners was drawn; the
recorded amount of money each won is listed here. Assume that the amount of money
that a winner go home with from the television quiz show Jeopardy is a normally
distributed random variable. Estimate with 95% confidence the mean winnings for all
the show’s players.

26650 6060 52820 8490 13660

25840 49840 23790 51480 18960

990 11450 41810 21060 7860

Exercise 6. During annual checkups, physicians routinely send their patients to


medical laboratories to have various tests performed. One such test determines the
cholesterol level in patients’ blood. However, not all tests are conducted in the same
way. To acquire more information, a man was sent to 10 laboratories and had his
cholesterol level measured in each. The results are listed here. Assume that the
cholesterol level in patients’ blood is a normally distributed random variable. Estimate
with 95% confidence the variance of these measurements.

188 193 186 184 190 195 187 190 192 196

Exercise 7. The GO transportation system of buses and commuter trains operates on


the honor system. Train travelers are expected to buy their tickets before boarding the
train. Only a small number of people will be checked on the train to see whether they
bought a ticket. Suppose that a random sample of 400 train travelers was sampled and
68 of them had failed to buy a ticket. Estimate with 95% confidence the proportion of
all train travelers who do not buy a ticket.
Exercise 8. Refer to Exercise 7. Assuming that there are 1000500 travelers per year
and the fare is $3.00, estimate with 95% confidence the amount of revenue lost each
year.

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