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### CA-Test-I -23.09.2011.doc

• 1. UNIVERSITY OF MADRAS Computer Applications for Economists – Test – I Date: 23.09.2011 Solve any 4 Questions ( 4 * 5 Marks each = 20 Marks ) 1. Given the demand and supply functions of watermelons along with its price range, create a table containing quantity demanded and supplied for watermelons at various price levels. Graph the same and depict the equilibrium price. Various prices at which watermelon bought and sold are: (Price in Rs.) 4 5 6 8 10 12 14 16 18 20 and the demand and supply equations are given as: Qd = 20 – P Qs = – 10 + 2P 2. A set of twelve students were given intensive coaching and five tests were conducted in a month. The scores of test 1 and test 5 are given in below and also in the file Testscores.xls. Use appropriate test to find out whether the scores from test 1 to test 5 show any significant improvement? Use 1%, 5% and 10% level of significance. Student Id 101 102 103 104 105 106 107 108 109 110 111 112 Test 1 50 42 51 26 35 42 60 41 70 55 62 38 Test 5 62 40 61 35 30 52 68 51 84 63 72 50 3. Estimate the consumption function using the cross-section data given below. What is the magnitude of MPC value? Test the statistical significance of the slope coefficient at 5% and 1% levels of significance. With the fitted model forecast the level of consumption at mean income and also forecast the level of consumption for an individual whose income is 20000. Person: 1 2 3 4 5 6 7 8 9 10 11 Consumption: 15600 6400 9200 14900 7200 7600 7200 8800 15400 4100 11500 Income 16300 6800 8600 15300 8700 7800 7300 10800 18600 5100 11800 4. An Income tax system taxes all incomes of ₤8,000 or less at a rate of 10%. For incomes in excess of ₤8,000, but not exceeding ₤20,000 the tax rate is 25% on that range of income. The top rate of tax is 40% and applies to income in excess of ₤20,000. Prepare a worksheet that can calculate the tax due for each level of taxable income given below. Also use Excel Charts to show the relationship between Taxable Income and Tax Due. Income (in dollars): 0 2000 4000 6000 8000 10000 12000 14000 16000 18000 5. Data on salary of a sample of 30 teachers belonging to various gender and ranks are given. Use a dummy variable regression model for same to estimate the differential effect of gender and rank in determining the mean salary of the teachers. Check whether there exists a statistically significant interaction effect for being a male professor. Interpret the statistical significance of the individual co- efficient and also the fit of the model as a whole. (Note: Use Female and Assistant Professor as Reference category)
• 2. Faculty Sl. No. Salary Gender Rank 1 38 Male Professor 2 58 Female Associate Professor 3 80 Female Professor 4 30 Female Assistant Professor 5 50 Female Assistant Professor 6 49 Female Assistant Professor 7 45 Male Professor 8 42 Female Assistant Professor 9 59 Male Professor 10 47 Female Associate Professor 11 34 Male Assistant Professor 12 53 Male Associate Professor 13 35 Female Assistant Professor 14 42 Male Assistant Professor 15 42 Male Assistant Professor 16 51 Male Professor 17 51 Female Associate Professor 18 40 Male Assistant Professor 19 48 Female Associate Professor 20 34 Female Assistant Professor 21 46 Female Associate Professor 22 45 Male Assistant Professor 23 50 Female Assistant Professor 24 61 Male Professor 25 62 Female Professor 26 51 Male Assistant Professor 27 59 Male Professor 28 65 Female Associate Professor 29 49 Male Assistant Professor 30 37 Female Assistant Professor
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