Reference no: EM13338759

Part A:

Foreign trade is important to Australia. One of the measures of Australia's standing in the world economy is its trade balance figures. Economists in calculating trade balances will look at the relationship between exports and imports of merchandise goods. If exports exceed imports, then Australia is said to have a trade surplus. On the other, if imports exceed exports, then, Australia faces a trade deficit. And when exports equal imports, then we have a trade balance.

Go to the Australian Bureau of Statistics Website, Australian Economic Indicators, Table 53680 and obtain the monthly data for exports and imports ($millions) from 1988 - 2009.

(i) Using descriptive statistical tools you have learned in this course, write a non-technical report on monthly exports and imports for Australia over the period 1988 to 2007. The summary results will form part of the final report.

(ii) Construct frequency distribution tables for both the exports and imports data. Plot the frequency distributions on to one graph. Comment on your graphs.

(iii) Using the information that you have obtained, calculate a 95% confidence interval for the true average monthly exports for Australia. Remember to state any assumptions you have made.

(iv) The Federal Treasurer in his annual report to Parliament states that in the past decade, the average monthly imports for Australia was at least 1120 ($m). Is there statistical evidence to support the claim?

(v) It is claimed that the variability in the export data exceeds 19882400 ($m)2. Conduct a test to determine if there is evidence to support this claim. State any assumptions you have made.

Part B:

The growing interest in and use of the internet has forced many companies into considering ways to sell their products on the web. Therefore, such companies are interested in determining who is using the web. A statistics practitioner undertook a study to determine how education and internet use are connected. She took a random sample of 200 adults (aged between 20 years and older) and asked each to report the years of education they had completed and the number of hours of internet use in the previous week. The responses are recorded and stored in File XR 16-23. (Selvanathan et al p624)

(i) Obtain a graphical representation of the relationship and give a brief description of the relationship.

(ii) Estimate the simple regression line and interpret the estimated relationship.

(iii) Can the practitioner conclude that there is a linear relationship between the two variables?

(iv) Interpret the coefficient of determination and explain the difference between the coefficient of determination and the coefficient of correlation.

(v) On the basis of what the answers you have provided, evaluate the analysis you have performed.

Attachment:- Project.doc