University of Manitoba Economics Worksheet

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Quantitative Methods for Economics Assignment 1
1. A trucking company is tracking the total distance and time taken per delivery
assignment for each of its 10 trucks. It has recorded the following data:
x = distance
(km)
100
50
100
100
50
80
75
65
90
90
y = time
(hrs)
9.3
4.8
8.9
6.5
4.2
6.2
7.4
6.0
7.6
6.1
You must show your work (formulas with substitutions) to receive full marks.
a) Calculate summary statistics for distance and time: mean, median, range,
variance and standard deviation (using the population formulas). (5
marks)
b) Calculate the least-squares line. (2 marks)
c) Interpret the regression results. (2 marks)
d) Estimate the time taken for a delivery distance of 60km. (1 mark)
e) Calculate ??2 and r. (3 marks)
2. A box contains 16 flashlights, 4 of which are defective. If 4 flashlights are
selected at random without replacement, what is the probability that:
a) no defective flashlights are selected. (2 marks)
b) two defective flashlights are selected. (2 marks)
c) all four flashlights are defective. (2 marks)
d) at least one defective flashlight is selected. (2
marks) Question 3 next page
3. A website’s daily traffic follows a normal distribution, with a mean of 2.5
million visitors per day and a standard deviation of 620,000 visitors per day.
a) What is the probability that the website has less than 3 million visitors in a
single day? (2 marks)
b) What is the probability that the website has more than 1.5 million visitors in a
single day? (2 marks)
c) What is the probability that the website has between 2 million and 3 million
visitors in a single day? (2 marks)
d) Assume that 85% of the time, the website’s servers can handle the daily traffic
volume without purchasing additional server capacity. What is the amount of traffic
that will require the website to purchase additional server capacity? (3 marks)
Assignment 2 Intermediate economics.
Suppose Japanese cars and American cars are identical from their owners’ point
of view, but Japanese cars cause harmful pollution while American cars do not.
Each American owner of a Japanese car imposes $1,000 worth of pollution costs
on his neighbors. Suppose the U.S. supply and demand curves cross at a price of
$10,000, but Americans can buy as many cars as they want to from Japan at
$7,000 apiece.
1. Suppose the U.S. government imposes a tariff of $1,000 apiece on all
Japanese cars sold in the United States. Illustrate the gains and losses to all
relevant groups of Americans. Does the tariff increase or decrease social
welfare? By how much?
2. Suppose the U.S. government imposes a tax of $1,000 on all cars sold in the
United States, both foreign and domestic. Illustrate the gains and losses to all
relevant groups of Americans. Does the tax increase or decrease social welfare?
By how much?
3. Suppose the U.S. government offers a subsidy of $1,000 per car to all
American car makers. Illustrate the gains and losses to all relevant groups of
Americans. Does the subsidy increase or decrease social welfare? By how much?

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Explanation & Answer:
11 pages

Tags:
economics

Quantitative

trucking company

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