AYBU ECON206(PUBF) Spring 2025 Midterm Exam
Instructions: There are 4 questions for a total of 100 points. You have 75 minutes to complete the exam. Please turn
your cell phones off.
You can use your calculators. However, you cannot use mobile phones for calculations.
Please write your name and ID to every page of the exam.
Name: Student ID:
1.) [15 points] Answer the following multiple choice questions:
Question 1: Which of the following best defines an estimator?
A. A specific numerical value calculated from a sample
B. A formula or rule used to calculate a statistic from sample data to estimate a population parameter
C. The difference between a sample statistic and its corresponding population parameter
D. A range of values likely to contain the population parameter
Question 2: Which statement best describes a confidence interval?
A. The range containing exactly 95% of the sample data
B. A range of values that would contain the population parameter with certainty
C. A range of values constructed using a method that will contain the population parameter a specified
percentage of the time in repeated sampling
D. The difference between the largest and smallest values in a dataset
Question 3: An unbiased estimator is one that:
A. Always equals the exact value of the population parameter
B. Has an expected value equal to the population parameter it estimates
C. Has the smallest possible variance among all estimators
D. Always produces the same value regardless of the sample selected
Question 4: Which of the following statements about estimators is correct?
A. An efficient estimator always has zero bias
B. An estimator with smaller variance is always preferred over one with larger variance
C. An efficient estimator has the smallest variance among all unbiased estimators for a parameter
D. A consistent estimator has the same value regardless of sample size
Question 5: What happens to the width of a confidence interval as sample size increases (assuming all other factors
remain constant)?
A. It increases proportionally to the sample size
B. It decreases, approaching zero as sample size approaches infinity
C. It remains constant regardless of sample size
D. It initially decreases then increases after reaching an optimal sample size
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Name: Student ID:
2.) [25 points] Dr. Yıldız is conducting a study to compare the effectiveness of two sleep improvement techniques,
mindfulness meditation and cognitive behavioral therapy (CBT), in reducing sleep onset latency (the time it takes to
fall asleep). A random sample of 18 participants who practiced mindfulness meditation for four weeks had an
average sleep onset latency of 22 minutes with a sample standard deviation of 5 minutes. An independent random
sample of 14 participants who underwent CBT for four weeks had an average sleep onset latency of 28 minutes,
with a sample standard deviation of 7 minutes. Assume that the population distributions are normal with equal
population variances.
Find a 95% confidence interval for the difference in average sleep onset latency between the two techniques. Can we
conclude that there is a significant difference in effectiveness between mindfulness meditation and CBT in reducing
sleep onset latency?
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Name: Student ID:
3.) [30 points] Featherwing, a small but determined bird, dreams of becoming the fastest flyer in the enchanted forest.
The Wise Owl Academy is studying Featherwing’s flight times over a set course. His flight times (in seconds) follow
a normal distribution with a population mean of μ=50 seconds and a variance of σ2=25.
A random sample of n = 25 flight times is collected to analyze how consistent Featherwing's speed is.
a.) What is the value of the sample variance such that 10% of the sample variances would be less than this value?
b.) What is the value of the sample variance such that 5% of the sample variances would be greater than this value?
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Name: Student ID:
4.) [30 points] A sports scientist wants to measure the endurance levels of young athletes training for a marathon.
A random sample of 25 runners is chosen from a group of new trainees. Each runner's endurance level is assessed
based on the number of minutes they can sustain a steady running pace. The average endurance time recorded for
these athletes is 73 minutes, with a standard deviation of 28 minutes.
(a) Find the 90% confidence interval for the population mean endurance time.
(b) Find the 95% confidence interval for the population variance of endurance times.
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ECON206 Midterm Formula Sheet
Sample mean Independent sample, sample standard devia-
Pn tion of sample mean (known variances)
i=1 xi
x=
n
2 σx2 σy2
σX̄− Ȳ = +
Sample variance nx ny
Pn
2 i=1(xi − x̄)2
s =
n−1 Independent sample, pooled sample variance
(unknown equal variances)
Chi-square distribution
(n − 1)s2 (nx − 1) s2x + (ny − 1) s2y
χ2n−1 = s2p =
σ2 nx + ny − 2
Finite sample variance of sample mean
s2 N − n
2 Independent sample, confidence interval for
σ̂x̄ =
n N −1 difference of means (unknown equal vari-
ances)
Finite sample estimator of variance of popu-
lation total s
s2p s2p
2 (x̄ − ȳ) ± tnx +ny −2,α/2 +
2 2 2s N−n
N σ̂ x = N nx ny
n N−1
Finite sample estimator of variance of popu- Independent sample, degree of freedom (un-
lation proportion known unequal variances)
p̂(1 − p̂) N − n
σ̂p̂2 =
n N−1 h 2 2 i2
sx s
nx
+ nyy
v = 2 2 2
Dependent sample, sample mean of difference s2x
/ (n − 1) +
sy
/ (ny − 1)
nx x ny
Pn
di
d¯ = i=1
n Independent sample, confidence interval for
difference of means (unknown unequal vari-
Dependent sample, sample standard devia-
ances)
tion of difference
s
Pn ¯2
s
i=1 di − d Sx2 Sy2
Sd = (x̄ − ȳ) ± t +
n−1 v,α/2
nx ny
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Note that these are provided to help you remember basic equations. They are not comprehensive. You
will need more formula or variations of these equations that are covered in the class.