MGEB12 – Quantitative Methods in Economics-II

This is a closed book test. A formula sheet is attached. You are allowed the use of a calculator. Write your full name and your student ID # on both this test book as well as the Scantron paper. You have 90 Minutes. Good Luck! Last Name: First Name: ID FOR MARKERS ONLY: The University of Toronto's Code of Behaviour on Academic Matters applies to all University of Toronto Scarborough students. The Code prohibits all forms of academic dishonesty including, but not limited to, cheating, plagiarism, and the use of unauthorized aids. Students violating the Code may be subject to penalties up to and including suspension or expulsion from the University. MC Q#1 Q#2 Total Marks Earned Maximum Marks Possible Page 2 of 23 Part A (Long Questions) Question-1 (10 Points) The food label on a cookie bag states that there is at most 2 grams of saturated fat in a single cookie. In a sample of 36 cookies, it is found that the mean amount of saturated fat per cookie is 2.1 grams and that the standard deviation is 0.25. a) [6 Points] State the null and alternative hypotheses. Using the p-value approach, test the hypothesis at the 1% level of significance. Solution: 2.4 36 0.25 2.1 2 : 2 : 2 35 1 0      t H H   P-Value: Since t statistics falls betwe