M.A.

(PREVIOUS) EXAMINATION 2017 HELD IN 2018

ECONOMICS (PAPER III)
ADVANCE ECONOMIC STATISTICS

Time: 3 hours Max Marks: 100

Instructions:
(i) Attempt any FOUR questions in all. Question no. 1 is COMPULSORY.
(ii) The usual convention of denoting deviations by lower case letters applies.

Q1 The following table shows the distribution of salaries of employees at a certain organization:

Income Bracket (in ‘000s) No. of Workers

-0.50 – 20.50 180
19.50 – 40.50 200
39.50 – 80.50 70
79.50 – 120.50 30
119.50 – 380.50 15
379.50 – 620.50 5

(a) Using the above data construct a histogram and draw the frequency polygon. Also draw the
two ogives and determine the median graphically.
(b) Calculate the arithmetic and geometric means, median, mode and mean absolute deviation
around median.
(c) Calculate the first four raw moments around 40.
(d) Use the Romans to calculate the true moments and the coefficients of skewness and
kurtosis. What do the results in part (c) and (d) imply about the distribution of income? How
many employees and incomes (i) below 12,000 (ii) above 220,000?

Q2 (a) The following data shows prices and quantities of 2000, 2004 and 2009.

2000 2004 2009

Price Qty Price Qty Price Qty
A 77 50 125 48 198 55
B 185 26 236 24 298 20
C 88 102 165 110 198 130
D 146 30 155 32 175 40
E 158 40 166 40 170 41
F 44 12 45 10 47.5 12

Compute the Laspayre's, Paasche's and Fisher's price and quantity indices 2000 as the base year.
Also calculate the average annual rate of inflation between 2000 and 2004, and between 2000
and 2009 using each of the indices.

(b) Given the two index number series with base 1987 and base 1999 splice the two price index
series and shift the base of the consolidated series to 1995.
 Year 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
P1987 135 153 166.5 180 198 211.5 252 279
P1999 100 108 120 135 145 152

Q3 (a) The following table shows the country’s employed labour Force for some selected years.
Interpolate the value of employed labour force in the year 1986.

Year 1980 1984 1988 1992 1996

Labour Force
23.5 41.2 48.5 52.5 60.0
(in millions)

(b) Use the data in the table below to calculate the rank correlation between the grades
assigned to 15 job candidates by 2 panelist.

Panelist 1 20 25 27 27 30 30 32 33 35 36 37 38 38 38 39
Panelist 2 36 45 34 30 32 35 36 31 25 28 26 39 28 28 30

Q4 (a) Let Y represent the weight of the person and X represent his height (measured as relevant
class mid points). Then given the following bivariate frequency distribution resulting from a
small sample study.

Weight (lbs)
Classes 60-62 63-65 66-68 69-71 72-74
100-104 5 0 0 0 0
105-109 5 10 2 1 0
110-114 0 4 6 1 0
115-119 0 1 7 6 2

(i) Calculate the coefficient of correlation between X and Y.

(ii) Construct the conditional distribution of Y and X and obtain the conditional mean of Y on X.
(iii) Let Z represent the data series you have constructed in part B. Fit the straight line Z:rz+13-X
on this data and interpret the results.

(b) A box contains 5 red balls 7 green balls and 3 white balls. A ball is drawn and then a second
ball is drawn without replacement. What is the probability of (i) of a white chip on the first draw
and a read on the second (ii) two green chips being drawn (iii) a red chip on the second, given
that a white ship was drawn on the first.

Q5 (a) A farm house has an average daily sales of oranges equal to 4700 with standard deviation of
500 oranges. Sales follow a normal distribution. Determine (i) the probability that sales will be
more than 5500 (ii) the sales will be less than 4300, and (iii) the probability that sales will be
between 4900 and 5100.

(b) A soft drink machine at a steakhouse is regulated so that the amount of drink dispensed is
approximately normally distributed with a mean of 200 ml and a standard deviation of 15 ml.
The machine is checked periodically by sample of 9 drinks and computing the average content. If
the sample mean falls in the range 191-209, the machine is thought to be operating
 satisfactorily; otherwise, that it is 200ml. Test the hypothesis at Z 200 ml and tt=215ml at the 5%
level of significance. Also determine probability of type-1 error in each case.

Q6 Determine that trend seasonal and irregular components of the following time series data:

Y Q1 Q2 Q3 Q4
1995 41.655 41.314 42.331 43.229
1996 45.209 44.199 45.094 45.591
1997 47.96 46.1 46.6 47.56
1998 51.16 52.04 54.72 55.872
1999 57.89 57.16 58.31 59.565