statistic homework

Q1. The file \Files\Homework Materials\Census.xlsx shows a portion of median household income (income in $) and median house value (house Value in $) for the 50% in 2010.

1. Construct a boxplot for household income and use it to identify outliers, if any, and comment on skewness.

2. Construct a boxplot for median house value and use it to identify outliers, if any, and comment on skewness. 

3. Identify outliers using z-score. That is, identify data points that have a z-score greater than 3 or less than -3.

4. Calculate the coefficient of variation for Foreign Born % and No HS Diploma %. Which measures exhibit greater relative dispersion?

 

Q2. The following table shows the annual returns (in%) for the Fidelity South Asia Fund and the Fidelity Canada Fund for 2005 through 2009.

Year	South Asia	Canada
2005	43.71	35.02
2006	44.33	25.04
2007	55.17	42.64
2008	-56.64	-39.63
2009	11.60	27.89

1. which fund had the higher average return?

2. Which fund was riskier over this time period?

3. Given a risk-free rate of 3%, which fund has the higher Sharpe ratio? What does this ratio imply?

 

Q3. A sample of the salaries of data analysts at a local technology park revealed a mean income of $72,000 with a standard deviation of $3,000.

1. Using Chebyshev's theorem, what percentage of the analysts earns at least $63,000 but no more than $81,000?

2. Assume that salaries follow a bell-shape distribution. Using the empirical rule, what percentage of the analysts earns at least $66,000 but no more than $78,000?