Introduction to Economic Statistics
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ECMT1010 Introduction to Economic Statistics
Instructions
i. Review the entries for ‘Late submission’, ‘Special consideration’, and ‘Academic integrity’ in
the ECMT1010 unit of study outline.
ii. Enter your answers using the Word template available under the ECMT1010 Canvas module
‘Assignment’.
iii. Save your answers as a .PDF file named 123456789.pdf where 123456789 is your 9-digit
University of Sydney SID. Do not put your name on your answers. Do not include a cover sheet.
iv. Submit the .PDF of your answers under the ECMT1010 Canvas module ‘Assignment’. Work
submitted after 11.59PM Friday 19 May 2023 is subject to a penalty of 5% per calendar day
late. Work submitted after 11.59PM Monday 29 May 2023 will receive a mark of 0.
v. Use your assigned data set (see below) is available under the ECMT1010 Canvas module
‘Assignment’. Enter your data set number (#) using the box provided in the Word template.
Use of the wrong data set is automatically reported to the Educational Integrity Coordinator,
Faculty of Arts and Social Sciences.
vi. There are 10 questions worth 2 marks each for a maximum of 20 marks. Answer all ques-
tions. The assignment is anonymously graded (provided you don’t put your name on it).
vii. Show numerical answers to 3 decimal places. Carry out all tests at a 5% level of significance.
viii. When communicating statistical results, it is important to be accurate and concise. Keep
your comments, conclusions, comparisons, etc., to one or two sentences. Excessively long
responses indicate a lack of understanding and will be penalised accordingly.
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Aim: The assignment illustrates the use of various statistical methods and software (e.g., Excel,
StatKey) to analyze economic data.
Data description: Your assigned data set is extracted from the Hollywood Movies dataset in the 3rd
edition of the Lock et al. textbook. It consists of the movie name, Rotten Tomatoes score, budget,
and world gross (the latter two in millions of US dollars) from a randomly-selected sample of
101 movies released between 2012 and 2018.
• Your assigned data set is available under the Canvas module ‘Assignment’ in the Excel file
Movies#.csv (where # is the last digit of your SID).
• The first row contains the variable names; the remaining rows contain the movie data.
The Movie column contains the name of the film, RottenTomatoes is the percentage of
critical reviews that are more positive than negative on the review aggregation website of
the same name, Budget is the production cost of the movie (in millions of US dollars),
and WorldGross is the cinema ticket revenue generated by the movie (in millions of US
dollars).
QUESTIONS
1. Find out and report the number of outliers the Budget variable has, briefly showing your steps.
[2 marks]
2. Using appropriate software, produce a scatterplot of Budget against RottenTomatoes for your
sample. Compute the sample correlation. Comment on the association between the two vari-
ables. [2 marks]
3. You want to use your data to investigate whether movie critics are biased in favour of big-
budget movies. While you realize you cannot establish causality in this setting, you nonethe-
less decide to investigate the possibility that larger movie budgets are associated with more
favourable critical reviews. Write down the null and alternative hypotheses accordingly, taking
care to define your notation clearly. [2 marks]