Webster University in Tashkent
STAT 1100: Descriptive Statistics
Spring 2022
Final Exam
Total points: 100
Weight: 30%
Instructions to students: You may use the following items during the exam:
• Pens
• Calculator
• Handwritten, self-prepared notes
• z table (this table is not provided and cannot be shared with others during the
examination)
Relevant part of Binomial table will be provided.
Show your all calculations in step-by-step form. Round your answers to at least two decimals.
1. [20 points] According to the website www.olx.uz, monthly rent for a two-bedroom
apartment has a mean of $200 and a standard deviation of $60 in the city of Samarkand. The
distribution of the monthly rent does not follow the normal distribution. In fact, it is positively
skewed.
a. What is the probability of selecting a sample of 49 two-bedroom apartments and finding
the mean to be at least $250 per month?
$%&'$&&
P(𝑥 ≥ 250) = P(z ≥ () ) = P(z ≥ 5.83) = 0
*
b. What is the 85th percentile for the mean rental price of two-bedroom apartments in
Samarkand?
,'$&&
z = 1.04 = ) => 𝑥 = $209
-&//
2. [15 points] It is reported that 2 out of 5 cars approaching the city of Tashkent are equipped
with an anti-radar system. Suppose having an anti-radar system is an independent event and the
probability of having anti-radar for any car is the same.
a. What is the probability that randomly chosen car approaching the city of Tashkent is
equipped with an anti-radar system?
p = 2/5 = 0.4
b. Find the probability that in a sample of 10 cars at least 3 of them have an anti-radar system.
(You may use a relevant table if necessary).
P(x ≥ 3) = 1 − P(x ≤ 2) = 1 – 0.167 = 0.833
3. [15 points] Compute the mean and variance of the following probability distribution.
x 5 10 15
p(x) 0.2 0.3 0.5
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E(X) = 𝜇 = 11.5
𝜎2 = 15.25
4. [20 points] The amount of time (x), in minutes, that a person must wait for a bus is
uniformly distributed between zero and 15 minutes, inclusive.
a. Sketch the graph of this distribution. Make sure to provide a, b and p(x) points in the
graph.
b. What is the probability that a person waits fewer than 12 minutes and 30 seconds?
<$.%
P(x < 12.5) = = 0.833
<%
c. Ninety percent of the time, the time a person must wait falls below what value?
<
0.90 = k* => k = 13.5
<%
5. [30 points] There are many factors affecting the price of diamonds. Cut, Carat and Clarity are
the main independent variables in determining the price of a diamond. Few rows of sample
data consisting of 34 observations are provided in Table 5.1. The researcher’s goal is to predict
the price of a diamond based on abovementioned three factors
Here:
• Obs – observation number.
• Carat (in carats) and Price (in USD) are quantitative measurements.
• Cut has three levels: Fair, Good and Excellent.
• Clarity has four levels: SI1, I1, VS1, VS2.
Table 5.1
Obs Carat Cut Clarity Price ($)
1 0.51 Excellent VS1 1749
2 2.25 Fair I1 7069
3 0.7 Good VS2 2757
4 0.47 Good VS1 1243
… … … … …
34 1.01 Excellent VS2 6244
a. What is multicollinearity and how is it diagnosed?
Strong correlation between independent variables and it is diagnosed through
pairwise correlation coefficients (correlation matrix).
b. Build a fitted multiple linear regression model to predict Price with the following
explanatory variables: Carat, Cut, and Clarity.
𝑃𝑟𝚤𝑐𝑒 = b0 + b1*Carat + b2*Excel + b3*Good + b4*SI1 + b5*I1 + b6*VS1
c. Partial regression results are given in Table 5.2. Write down the fitted linear
regression model based on the coefficients given on this table. Provide the
interpretations of the regression coefficients.
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𝑃𝑟𝚤𝑐𝑒 = -12281.194 + 8600.086*Carat + 9596.225*Excel + 9364.20*Good
One carat increase will result in $8600.09 in average Price while all else being equal.
Excellent cut diamond is $9596.23 more expensive compared to fair cut diamond all
else being equal.
Good cut diamond is $9364.2 more expensive compared to fair cut diamond all else
being equal.
d. Compute the R squared and Adjusted R squared.
CCD 601848639
R2 = = = 0.90
CCE 670033982
<'D J ∗(M'<) &.<&*(QR-<)
Adj. R2 = 1 – = 1– = 0.89
M'N'< QR-Q-<
e. What is the predicted price of the diamond if its cut is good, and has 0.5 carats?
𝑃𝑟𝚤𝑐𝑒 = -12281.194 + 8600.086*0.5 + 9596.225*0 + 9364.20*1 = $1383
Table 5.2. Partial Regression results
ANOVA
df SS MS F Significance F
Regression 3 601848639 200616213 88.26657 0.000
Residual 30 68185343 2272845
Total 33 670033982
Coefficients SE t Stat P-value
Intercept -12281.194 1930.768 -6.361 0.000001
Excellent 9596.225 1740.988 5.512 0.000005
Good 9364.200 1728.957 5.416 0.000007
Carat 8600.086 536.108 16.042 0.000000
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