ASSIGNMENT 2

Ranald Macky 694032, ECON10005

WOMEN
midpoint
Frequency (m)(thousands
(f)
of dollars) f*m f*m^2
89
192
236
111
86
25
11
3
2
0
0
1

25
35
45
55
65
75
85
95
105
115
125
135

2225
6720
10620
6105
5590
1875
935
285
210
0
0
135

Mean salary =34700/756

$45,899.470
Q1:
0.25*756=189
189th salary= $35,000
Q3:
0.75*756=567
567th salary= $55,000
IQR= 55,000-35,000=20,000
Variance:
1755300/756 45.899470^2
=2275.9259
($2,275,925.90)

55625
235200
477900
335775
363350
140625
79475
27075
22050
0
0
18225
=34700

MEN
f

m
26
221
677
823
365
182
91
33
19
11
0
3

f*m
25
35
45
55
65
75
85
95
105
115
125
135

650
7735
30465
45265
23725
13650
7735
3135
1995
1265
0
405

f*m^2
16250
270725
1370925
2489575
1542125
1023750
657475
297825
209475
145475
0
54675

Mean =136025/2451= 55.497756

Mean salary is 55,497.76
Q1:
0.25*2451= 612.75
612th salary = $45,000
Q2:
0.75*2451=1838.25
1838th salary= $65,000
Hence, IQR= 65,000-45,000=20,000
Variance:
8078275/2451-55.497756^2
=3240.412077
($3,240,412.077)
From this data, we can conclude that whilst the mean male salary is higher (at $55,497.76), there is
also a higher variance over which male salaries are spread.

3A

3B)
(0): When the units for labour and capital in the production process =0 , then total output will be
$1,363.
(1): Every additional unit of capital used will increase total output by $62.32.
(2): Every additional unit of labour used will increase total output by $48.46.
(0): The natural logarithmic output, assuming capital and labour equal zero, will be
-128.7.
(1): A 1% increase capital will increase output by 0.4877%.
(2): A 1% increase in the quantity of labour will increase output by 0.559%.

c)
Data Analysis obtained from excel is such that the coefficient of determination (R2) for both models
are
Original data model : 0.669 (66.9% of the variation in total output can be explained by variations in
the factors of production)
Logarithmic model :0.688 (66.8% of the variation in total output can be explained by variations in
the factors of production)
d)