Suspicion Of Plagiarism

If I have a suspicion of plagiarism, you will have to come to my office and retake the exam. Students participating in
plagiarism activities could also receive zero for this exam and will be subject to disciplinary sanctions (including but not
limited to a failing grade in this course).
Each question is worth 20 points. Please type your answers when possible. Please place all of your answers right below
each question. DO NOT delete the questions. Please make sure to provide explanations to all the answers you are giving.
If you are using excel to perform testing, please make sure to copy and paste formulas you have used. This will help me to
identify the reasons for which you could’ve made a mistake and it will ensure me that you knew what you were doing
when answering questions and not just guessing. You must provide all the explanations and show all calculations to
receive full credit.
For problems 1-5, you will need to access the file “Ann Arbor Rent” that contains data
on rental prices and housing characteristics of apartments in Ann Arbor area. The
following data is presented in file:
Rent – monthly rent in $ per apartment unit
Bed – number of bedrooms
Bath – number of bathrooms
Sqft – size of the apartment in square feet
Safety – neighborhood safety ratings (1 – least safe, 5 – most safe)
Garage – garage availability and cost : ‘paid’ – garage parking available for extra cost,
‘included’ – garage parking available for no extra cost, ‘no’ – garage parking is not
available
Please answer ALL questions as if you were creating a report that you would present at your
office meeting. This means your report must be clear, concise, visually attractive, and written in
the manner that it is easily understood by your co-workers (who are not as proficient in
econometrics and statistics as you are).
Question 1. Descriptive statistics.
a) Create a frequency distribution table for “Bed” and the “Rent” variables. In a few
sentences discuss what you can conclude based on the frequency distribution tables.
Create a pie chart using the frequency distribution table for “Bed” variable and create a
histogram for “Rent” variable.
Answer:
Table 1 Frequency distribution table for Bed
From the table 1 frequency distribution table for bed it has been seen that there are 19
observations in the single bed and 21 observations in the double bed.

Table 2 Frequency distribution table for Rent
From the table 2 frequency distribution table for rent it has been seen that the maximum
number of observations lies on the 1000-1500 class and the minimum number of frequency
has been lies on the 2000-2500 class.
48%
53%
Pie chart on Bed
Single Bed Double Bed
Figure 1 Pie chart on Bed
500 to 1000 1000 to 1500 1500 to 2000 2000 to 2500
0
2
4
6
8
10
12
14
16
18
Histogram for Rent
Class
Frequency
Figure 2 Histogram for Rent

b) Provide summary statistics for “Sqft” variable. Make sure to discuss these statistics (Mean,
median, mode, st. dev., range).
Answer:
Table 2 Summary output Sqft
The mean, median and mode of the sqft is 1190.98, 1175 and 1000. Similarly the standard
deviation and the range of this variable is 350.48 and 1450.
c) Calculate correlation coefficient between “Rent” and “Safety” variables. Provide
interpretation. Create a scatterplot between these two variables. Discuss if your
scatterplot supports the correlation coefficient.
Answer:
Table 3 Correlation table
The correlation between rent and safety is 0.7. It is positive and strong.

0 5 10 15 20 25 30 35 40 45
0
500
1000
1500
2000
2500
3000
Scatter plot on safety versus Rent
Safety
Rent
Figure 3 Scatter plot on safety versus Rent
The figure 3 represent the scatter plot on safety versus rent. In this plot represent the
relationship between two variable. In the X-axis represent the safety and the Y-axis represent
the rent. The correlation between these two variables in strong and positive.
d) Complete the following table showing statistics for Rent by Safety. Which Safety rating has
the highest average rent? Which safety rating has the lowest average rent? Is that
expected? Explain.
Safety 1 Safety 2 Safety 3 Safety 4
Number of apartments
Average Rent
St. Deviation
(Hint: You may have to rearrange the data to answer this question. You can create a table in
excel where you would group your data according to the garage availability, similar to the table
listed above. Then calculate the averages and standard deviation for each of the groups.)
Answer:
Question 2. Hypothesis testing