TASK 5: Chapter 9 (Estimation and Confidence Intervals)
1. Compute the mean (µ) and the standard deviation (σ) of the home prices of your dataset
(60 homes). 1mark
2. For sample A, compute the mean and the standard deviation of home prices for the 16
3. For sample B, compute the mean and the standard deviation of the home prices for the 36 homes
4. For Sample A, what is the point estimate of the population mean of the homes prices? 1mark
5. The Government in Abu Dhabi wish to have information on the mean homes prices. Assume that the population standard deviation is AED 470,000.
By using Sample A, what is a reasonable range of values for the population mean? (Use 95%
confidence level). Use mean: ̅A and =470,000
Would it be reasonable to conclude that the population homes prices mean is AED 2,000,000? 2marks
6. Assume that is unknown. By using Sample B, construct a 90 percent confidence interval for the population mean. [Use the mean and the standard deviation of Sample B]
Would it be reasonable to conclude that the population homes prices mean is AED 2,800,000? 2marks
7. How large a sample is needed to find the populations mean of the homes prices within AED 150,000 at 99 percent confidence? Use the standard deviation of your population (60 homes). 2marks
TASK 6: Chapter 10 (One-Sample Tests of Hypothesis).
1. A researcher claims that the prices of homes in Abu Dhabi are less than AED 2,500,000. Use your dataset of 60 homes, and a population standard deviation of UAE is AED 470,000.
Is there evidence to support the claim at a 0.05? Use the traditional method. Show all the steps. 6 marks
2. A researcher claims that the home prices in Abu Dhabi are AED 3,000,000. By using Sample
B and assuming that is unknown [Use the mean and the standard deviation of Sample B] ;
test the claim at
a) 0.01 significance level
b) 0.05 significance level
Use the P-value method. Show all the steps. 8 marks
TASK 7: Chapter 13 (Correlation and Linear Regression)
QUESTION TO ANSWER: Are the home price and the distance away from the city related?
1. Determine the dependent variable and the independent variable. Describe the relationship
between the dependent variable and the independent variable. Draw the scatter diagram of your dataset (60 homes). 2marks
2. Determine the regression equation. What is a regression equation and what is it used for? 2marks
3. What is the slope of the regression line? What does it represent? 1 mark
4. State the value of Y- intercept. Comment on its value. 1 mark
5. State the value of correlation coefficient. Comment on its value. 1 mark
6. State the value of coefficient of determination. Comment on its value. 1 mark
7. Predict the selling price of a home 23 kilometers from the center of the city. Comment on the reliability of your prediction.
8. Estimate the distance of a home whose price is AED 2,900,000. Comment on your estimation. 1 mark