STA 4109-01 STATISTICAL DATA ANALYSIS
STATISTICAL DATA ANALYSIS
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STA 4109-01 STATISTICAL DATA ANALYSIS
All work on this project must be your own;
You are not allowed to discuss the project with anyone;
You are not allowed to share computer output with anyone;
Late project will NOT be collected.
The project is designed to submit to your supervisor who has no statistical knowledge except
average and percentage. Your typed draft (NOT hand-writing) should consist of two parts,
“Summary” and “Supporting Evidence” (Appendix).
The summary will consist of: a statement of your conclusions, with relevant summary
statistics and probability statements. The summary should be up to 2 pages of notes
with more than single line space;
Your supporting evidence will consist of: ATMOST 5 graphical or numerical displays
that are designed to convince someone familiar with statistical analysis that your
analysis is sound, and that your conclusions are justified. For example, just giving
a graph is NOT enough: you must explain what the graph shows and why it is
interesting;
Unlabeled or unreferenced computer output will count against you. Two-page limits
will be strictly enforced.
The BicMac data includes economic data on 45 world cities from the period
1900–1991.
The Big Mac hamburger is a simple commodity that is virtually identical
throughout the world.
One might expect that the price of a Big Mac should therefore be the same
everywhere, but of course it is not the same.
The Economist magazine has published a Big Mac party index, which com-
pares the costs of a Big Mac in various places, as a measure of inefficiency in
currency exchange.
We will use these data to study how the cost of a Big Mac varies with economic
indicators that describe each city.
Table: The Big Mac Data
Y BigMac Minutes of labor required by an average worker to buy a BigMac and French fries
X1 Bread Minutes of labor required to buy one kilogram of bread
X2 BusFare The lowest cost of a ten-kilometer bus, tram, or subway ticket, in U.S. dollars
X3 EngSal The average annual salary of an electrical engineer, in thousands of U.S. dallars
X4 EngTax The average tax rate paid by engineers
X5 Service Annual cost of 19 services, primarily relevant to Europe and North America
X6 TeachSal The average annual salary of a primary school teacher, in thousands of U.S. dallars
X7 TeachTax The average tax rate paid by primary teachers
X8 VacDays Average days of vacation per year
X9 WorkHrs Average hours worked per year
X10 City Name of city
Build your model to explain the response BigMac using Bread, BusFare, . . . ,
and WorkHrs.