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1.
(i) sum(Xi)~N(nu,ns^2)
i.e T~N(405,324)
(ii)T>369=Z>N((369-405)/sqrt(324))
i.e P(Z)>-2=P(z<2)=.97725
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2.
(i) A2=1/6
(ii) A3=11/36
(iii) A2=3/4
(iv)(a) A2
(b) assumption is that X and Y should be independent and identical
(c) 1/4
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3.
(i) A2

(ii) (.015*.40)/(.02*.35)+(.015*.40)+(.010*.25)=.3870
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4
(i) y should be greater than b and less than inf
(ii) A4
(iii) T>5
(iv) a=(5-t)/e^(t-5)*b
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10.
(i) in linear regression explanatory variable is x which is quantified in numbers
and it is independent variable ….. response variable is y whose value is
dependent on x and is called dependent variable.. for null model y is not
depended on x as there is no x

(v) by using the plot we get to know that there is moderate positive
linear relationship between house price and school index. That is with
higher house price quality of schools are excellent and vice versa
(a) A1=2.295
At 5% level of significance we will look at z table i.e z2.5% which is
equal to 1.96
Since our test statistics is greater than 1.96 we reject H0 i.e p not equal
to 0
(iii) (a)=A3
(iv)(a)
bhat=195/26.4=7.386
CI for bhat is bhat+-t8*se(bhat)
Sigma hat ^2=((2912.5-(195)^2/26.4))/8=184.019

(b) t .s=(7.386-0)/sqrt(184.019/26.4)=2.7975

(c) (Bhat-b)/sqrt(sigma cap^2/Sxx)

(d) t2.5,8=2.306

since t.s is greater than critical point we reject h0 i.e b=not 0

(v) we get to know that if r =0 then b=0
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9. (i) the distribution of Z is ((n-1)s^2)/sigma^2~chi squared with n-1 i.e

299 degrees of freedom

(ii) E(Z)=(n-1)=299
V(Z)=2(n-1)=598

(iii) the distribution of Z is positively skewed for less n but when n tends
to rise Z from a chi squared distribution will convert into normal
distribution by normal approximation and will be symmetrical i.e skewed
about 0

(iv)1.96 and -1.96

(v) CI for mean income is xbar+-tn-1*s/sqrt(n)

i.e 1838+1.96*211/sqrt(300)=(1814.123,1861.876)

(vi) 608+-1.96*275/sqrt(300)=(576.880,639.119)
(vii) [299*(211)^2]/chi squared n-1 dof, 2.5%[299*(211)^2]*chi squared
n-1 dof,97.5%
(viii) A4

(iv) 2.5%=129.6

97.5%=74.22

(ix)
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8.
(i) (a) E(m(t))=sum(xibar)/4=(36+40+20+62)/4=39.5
(b)(1/4)*1*186=46.5(using formulae given in the formula book)
(c)
(xi-xbar)^2
(36-39.5)^2
(40-39.5)^2
(20-39.5)^2
(62-39.5)^2
Sum=2159

Var(m(t))=(1/3)*2159-(1/2)*46.5=696.416

(iii) – the distribution of xij depends on an unknown parameter t whose

value is fixed
 Xij is iid (identically and independently distributed) only when t is
known
(b) these assumptions mean that Theta though follows a distribution but we
don’t use in this EBCT model and we make estimation based on sampling
model only and also

(ii) the value of X13 should lie between 29 and 36 because Xi bar is given as 36
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7.
(i) A2
(ii) A4
(iii) we know that E(X) = b’(t) =m which is correctly stated by a analyst
V(X)=a(phi)*b’’(t)=s^2 so the standard deviation would be s not s^2 so the
analyst is partly correct and partly wrong.
(iv) a factor is a part of covariates which can be categorised according to the
qualities .. whereas a variable is a part of covariates which is quantified in
numbers … both will affect the values of dependent variable i.e y
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5.(i)
Sxx=2014-(141)^2/10=25.9
Syy=1629-(127)^2/10=16.1
Sxy=1810-(141*127)/10=19.3

(ii) r=Sxy/sqrt(Sxx*Syy)=19.3/sqrt(25.9*16.1)=.94513
Strong positive linear correlation between x and y
(iii) bhat=19.3/25.9=.74517
acap=12.7-(.74517)*14.1=2.193
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6.
(i) – the response variable should follow the distribution from exponential
family
-- linear predictor i.e eta is function of covariates
For e.g eta=ahat+bhat *x
 Link function i.e eta is function of mu and mu itself is E(Y)
i.e eta=g(E(Y))

(ii) Dx~Poi(mx)
---- response variable i.e Dx (no. of deaths ) follows poisson
distribution which is a part of exponential family
eta=a+b*xi
--- eta is function of covariates hence second component is justified
From link function
Eta=log(mx)=exp(eta)=mx=exp(a+bx)=mx
--- here the third component is justified as eta is function of mx and mx itself
E(Y)

(iii) A1

(iv) A3