Text Book - Essential Statistics, Regression, and Econometrics Second Edition by Gary Smith

Chapter 1 Assignment -

1.3 Which of these data are categorical and which are numerical?

a. A cell phone's brand.

b. A cell phone's estimated battery life.

c. A cell phone's screen size.

d. A cell phone's carrier.

1.4 Identify the following data as cross-section, time series, or panel data:

a. Unemployment rates in Germany, Japan, and the United States in 2015.

b. Inflation rates in Germany, Japan, and the United States in 2009.

c. Unemployment rates in Germany in 2012, 2013, 2014, and 2015.

d. Unemployment rates in Germany and the United States in 2012, 2013, 2014, and 2015.

1.6 The Framingham Heart Study began in 1948 with 5209 adult subjects, who have returned every 2 years for physical examinations and laboratory tests. The study now includes the children and grandchildren of the original participants. Identify the following data as cross-section, time series, or panel data:

a. The number of people who died each year from heart disease.

b. The number of men who smoked cigarettes in 1948, 1958, 1968, and 1978.

c. The ages of the women in 1948.

d. Changes in HDL cholesterol levels between 1948 and 1958 for each of the females.

1.7 Identify the following data as cross-section, time series, or panel data:

a. Blood pressure of one woman every 2 years.

b. The average HDL cholesterol level of the men in 1948, 1958, and 1968.

c. The number of children each woman had in 1958.

d. The age at death of the 5209 subjects.

1.8 Table 1.12 lists the reading comprehension scores for nine students at a small private school known for its academic excellence. Twenty students were admitted to the kindergarten class, and the nine students in the table stayed at the school through eighth grade. The scores are percentiles relative to students at suburban public schools; for example, Student 1 scored in the 98th percentile in first grade and in the 53rd percentile in second grade. Identify the following data as crosssection, time series, or panel data:

a. Student 4's scores in grades 1 through 8.

b. The nine students' eighth grade scores.

c. The nine students' scores in first grade and eighth grade.

d. The nine students' scores in first grade through eighth grade.

1.9 Table 1.13 shows index data on the overall CPI and three items included in the CPI. Explain why you either agree or disagree with these statements:

a. Food cost more than housing in 2010.

b. Housing cost more than food in 2000 but cost less than food in 2010.

c. The cost of food went up more than the cost of housing between 2000 and 2010.

1.10 Explain why you either agree or disagree with these statements:

a. Apparel cost less than food in 2000.

b. The cost of apparel went down between 2000 and 2010.

c. The cost of food went up more than the overall CPI between 2000 and 2010.

1.12 Table 1.14 shows data on four apparel price indexes that are used to compute the CPI. Explain why you either agree or disagree with these statements:

a. Men's apparel cost more than women's apparel in 2000.

b. Men's apparel cost more than women's apparel in 2010.

c. Men's apparel cost more in 2000 than in 2010.

1.30 A researcher wants to see if U.S. News & World Report rankings influence the number of applications received by colleges and universities. He obtains the unadjusted data shown in Table 1.17 on applications to one small liberal arts college. To take into account the nationwide growth of college applications, this researcher uses data from the Consortium on Financing Higher Education (COFE) showing that, during this period, college applications increased by an average of 4 percent per year. He consequently adjusted the number of applications to this college by dividing each value by 1.04. Identify his mistake and explain how you would calculate the adjusted values correctly. Do not do the actual calculations; just explain how you would do them.

1.34 The Dow Jones Industrial Average was 838.92 on December 31, 1970, and 11,577.51 on December 31, 2010. The CPI was at 39.8 in December 1970 and 219.2 in December 2010 (using a base of 100 in 1982-1984). Did the Dow increase by more or less than consumer prices over this 40-year period? If the Dow had increased by just as much as consumer prices, what would the value of the Dow have been on December 31, 2010?

1.45 Mr. Bunker lives on beer and pretzels. In 2000, he bought 1000 six-packs of beer for $2.00 per six-pack and 500 bags of pretzels for $1.00 per bag. In 2010, Bunker's beer cost $3.00 per six-pack and his pretzels cost $2.00 per bag. One way to calculate Bunker's rate of inflation is

100(C₂₀₁₀-C₂₀₀₀/C₂₀₀₀)

where C₂₀₁₀ = cost of 1000 six-packs and 500 bags of pretzels in 2010 and C₂₀₀₀ = cost of 1000 six-packs and 500 bags of pretzels in 2000. What was the percentage increase in Bunker's cost of living between 2000 and 2010? If we calculate a Bunker Price Index (BPI) and scale this BPI to equal 100 in 2000, what is the 2010 value of the BPI?