Question

In: Statistics and Probability

Use the Housing Interest Rate database (see DATA at bottom of this question) In this part...

Use the Housing Interest Rate database (see DATA at bottom of this question)

In this part using Housing Interest Rate database, the objective is to compare the variation in the FIXED_RATE between two periods; before 2000 and after year 2000.

  • i) Using descriptive statistics measures to interpret the shape of FIXED_RATE variable, calculate any outlier(s) finally verify whether if the empirical rule applies to the FIXED_RATE distribution.  Use an appropriate graph to confirm your findings.
  • ii) Use a random generating procedure to draw a random sample of size 80 with respect to the “before and after year 2000 “factor.  Indicate which sampling method you used.  Using your sample data, calculate which period shows more variation in the FIXED_RATE.  Using the sample data, what is the   sampling error of FIXED_RATE?



I WILL GIVE YOU THUMBS UP AND EXCELLENT REVIEWS FOR HELP/GUIDANCE WITH THIS. ANY HELP WILL BE GREATLY APPRECIATED! THANK YOU!

DATA:

YEAR MONTH FIXED_RATE% STARTS in $100 # Houses SOLD
1990 1 9.81 1551 45
1990 2 9.97 1437 50
1990 3 10.03 1289 58
1990 4 10.14 1248 52
1990 5 10.22 1212 50
1990 6 10.21 1177 50
1990 7 10.2 1171 46
1990 8 9.99 1115 46
1990 9 9.99 1110 38
1990 10 10.06 1014 37
1990 11 10.11 1145 34
1990 12 9.87 969 29
1991 1 9.75 798 30
1991 2 9.62 965 40
1991 3 9.45 921 51
1991 4 9.47 1001 50
1991 5 9.52 996 47
1991 6 9.49 1036 47
1991 7 9.49 1063 43
1991 8 9.52 1049 46
1991 9 9.33 1015 37
1991 10 9.1 1079 41
1991 11 8.77 1103 39
1991 12 8.58 1079 36
1992 1 8.35 1176 48
1992 2 8.46 1250 55
1992 3 8.65 1297 56
1992 4 8.71 1099 53
1992 5 8.68 1214 52
1992 6 8.52 1145 53
1992 7 8.28 1139 52
1992 8 8.09 1226 56
1992 9 7.92 1186 51
1992 10 7.92 1244 48
1992 11 8.06 1214 42
1992 12 8.18 1227 42
1993 1 8.08 1210 44
1993 2 7.86 1210 50
1993 3 7.67 1083 60
1993 4 7.56 1258 66
1993 5 7.48 1260 58
1993 6 7.48 1280 59
1993 7 7.34 1254 55
1993 8 7.24 1300 57
1993 9 7.08 1343 57
1993 10 6.93 1392 56
1993 11 6.99 1376 53
1993 12 7.2 1533 51
1994 1 7.19 1272 46
1994 2 7.14 1337 58
1994 3 7.32 1564 74
1994 4 7.68 1465 65
1994 5 8.15 1526 65
1994 6 8.33 1409 55
1994 7 8.36 1439 52
1994 8 8.5 1450 59
1994 9 8.5 1474 54
1994 10 8.64 1450 57
1994 11 8.79 1511 45
1994 12 8.9 1455 40
1995 1 9.06 1407 47
1995 2 8.96 1316 47
1995 3 8.82 1249 60
1995 4 8.6 1267 58
1995 5 8.3 1314 63
1995 6 7.88 1281 64
1995 7 7.76 1461 64
1995 8 7.88 1416 63
1995 9 7.82 1369 54
1995 10 7.71 1369 54
1995 11 7.63 1452 46
1995 12 7.51 1431 45
1996 1 7.28 1467 54
1996 2 7.24 1491 68
1996 3 7.47 1424 70
1996 4 7.82 1516 70
1996 5 8.05 1504 69
1996 6 8.17 1467 65
1996 7 8.27 1472 66
1996 8 8.19 1557 73
1996 9 8.2 1475 62
1996 10 8.12 1392 56
1996 11 7.92 1489 54
1996 12 7.77 1370 51
1997 1 7.87 1355 61
1997 2 7.87 1486 69
1997 3 7.91 1457 81
1997 4 8.1 1492 70
1997 5 8.14 1442 71
1997 6 8 1494 71
1997 7 7.79 1437 69
1997 8 7.69 1390 72
1997 9 7.69 1546 67
1997 10 7.57 1520 62
1997 11 7.5 1510 61
1997 12 7.41 1566 51
1998 1 7.24 1525 64
1998 2 7.19 1584 75
1998 3 7.19 1567 81
1998 4 7.21 1540 82
1998 5 7.21 1536 82
1998 6 7.2 1641 83
1998 7 7.13 1698 75
1998 8 7.09 1614 75
1998 9 6.97 1582 68
1998 10 6.82 1715 69
1998 11 6.85 1660 70
1998 12 6.88 1792 61
1999 1 6.89 1748 67
1999 2 6.92 1670 76
1999 3 7.01 1710 84
1999 4 7.05 1553 86
1999 5 7.09 1611 80
1999 6 7.34 1559 82
1999 7 7.59 1669 78
1999 8 7.79 1648 78
1999 9 7.87 1635 65
1999 10 7.87 1608 67
1999 11 7.87 1648 61
1999 12 7.9 1708 57
2000 1 8.08 1636 67
2000 2 8.27 1737 78
2000 3 8.31 1604 88
2000 4 8.27 1626 78
2000 5 8.35 1575 77
2000 6 8.43 1559 71
2000 7 8.29 1463 76
2000 8 8.16 1541 73
2000 9 8.03 1507 70
2000 10 7.95 1549 71
2000 11 7.85 1551 63
2000 12 7.68 1532 65
2001 1 7.31 1600 72
2001 2 7.13 1625 85
2001 3 7.06 1590 94
2001 4 7.09 1649 84
2001 5 7.18 1605 80
2001 6 7.21 1636 79
2001 7 7.21 1670 76
2001 8 7.13 1567 74
2001 9 6.97 1562 66
2001 10 6.76 1540 66
2001 11 6.67 1602 67
2001 12 6.89 1568 66
2002 1 7.02 1698 66
2002 2 6.98 1829 84
2002 3 6.98 1642 90
2002 4 7.11 1592 86
2002 5 6.99 1764 88
2002 6 6.87 1717 84
2002 7 6.72 1655 82
2002 8 6.53 1633 90
2002 9 6.36 1804 82
2002 10 6.23 1648 77
2002 11 6.2 1753 73
2002 12 6.21 1788 70
2003 1 6.09 1853 76
2003 2 6.02 1629 82
2003 3 5.9 1726 98
2003 4 5.9 1643 91
2003 5 5.74 1751 101
2003 6 5.5 1867 107
2003 7 5.53 1897 99
2003 8 5.88 1833 105
2003 9 6.19 1939 90
2003 10 6.05 1967 88
2003 11 6.06 2083 76
2003 12 6 2057 75
2004 1 5.92 1927 89
2004 2 5.85 1852 102
2004 3 5.71 2007 123
2004 4 5.72 1968 109
2004 5 6.07 1974 115
2004 6 6.25 1827 105
2004 7 6.26 1986 96
2004 8 6.1 2025 102
2004 9 5.9 1912 94
2004 10 5.91 2062 101
2004 11 5.89 1807 84
2004 12 5.9 2050 83
2005 1 5.9 2188 92
2005 2 5.9 2228 109
2005 3 5.98 1836 128
2005 4 6.09 2038 122

Solutions

Expert Solution

Question 1 : solved completed.

Descriptive statistics

Step 1 : Put the data in excel as shown.


Step 2 : Go to Data -> Data Analysis -> Descriptive statistics.


Step 3 : Input the values as shown.


Step 4 : The output will be generated as follows

We see that the mean and median are equal indicating the data is normally distributed.

checking for empirical distribution.

The details step and calculation is shown below

Question 2 : not clearly about the sampling techique with regard to before and after 2000.


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