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quantitative tasks

This individual assignment must be submitted by 9am on the above due date. Any assignment submitted after the due date or time will be given a mark of zero.

The purpose of this assignment is to give you practice in doing the types of quantitative tasks often undertaken by Commerce graduates, and to give you feedback on your ability to carry out such tasks. Learning how and when to use each quantitative technique is the main objective of this subject.

Your assignment answers must be no more than SIX pages in total, including all graphs, tables of numbers, and written answers. Only undertake appropriate tests and provide necessary discussions. Providing unnecessary tests or discussions may results in marks deductions.

Students should submit their assignment answers electronically using the LMS. Details on how to submit assignments through LMS are provided at the following link:

https://www.lms.unimelb.edu.au/teaching/assessment/turnitin/

It is essential that you include the name of your tutor and your allocated tutorial day and time at the top of your assignment answers in order for your assignment to be graded in a timely manner.

Dr Wasana Karunarathne

Department of Economics

The University of Melbourne

QM2 Assignment 1 Summer 2016 Page 2

Question 1: Users Obtaining Finance News (15 Marks)

Financial decisions are a part of everyday life. Making such decisions can be complicated and complex. Thinking of longer term, planning for retirement, buying a house or investments or making short-term decisions such as choosing the best credit card, insurance policy, people need to be informed to make confident financial decisions.

The excel file Assignment1_data.xlxs contains some data from a survey conducted by a researcher, who studies financial literacy and savings behaviour of people in Australia. The data is explained below:

Age: age of the respondent

Gender: if the person is a male or female (recorded 0 for female and 1 for male)

Read newspaper last month?: recorded value “1” if the person has read a financial section of a newspaper last week, “2” if not)

Listen or watch news last month?: recorded value “1” if the person has watched financial news last week, “2” if not)

Your aim is to understand the type of users seeking to obtain information about finance and the means they used to obtain said information.

Conduct all statistical analyses in this question using a 5% level of significance.

i Using an appropriate graph, present and discuss gender variation in reading and watching financial news (Note: You can use Excel to construct the graph). [2 marks]

ii Suppose that you are interested to know reading and watching financial behaviour of two other groups of people: those who are below age 55 and those who are 55 and above. Using an appropriate graph, present and discuss variation in reading/ watching financial news behaviour of these two age groups.

[2 marks]

iii Do we have sufficient evidence to infer that more people watch financial news compared to read them? [3 marks]

iv Is there sufficient evidence to infer that men read financial section of the newspaper more than women? Use p-value approach. [4 marks]

v Using an appropriate statistical test, infer if there is a statistical difference in reading financial section of the newspaper among two age groups (55 and older and below 55).

[4 marks]

QM2 Assignment 1 Summer 2016 Page 3

Question 2: Success behind a Growth Mindset (15 Marks)

In her ground-breaking research, Carol Dweck, a world-renowned psychologist from Stanford University, found that success is accorded to an individual based on whether they have a growth mindset or a fixed mindset. It is believed that those with a Growth Mindset can develop their abilities through dedication and hard work, while on the contrary, the abilities of those with a Fixed Mindset can only remain at a constant level.

A great believer of the Growth Mindset, a high school principal, decides to investigate the difference in performance of his Year 12 students based on their mindset. He first chooses a group of Year 12 students and presents them with a questionnaire, allowing them to identify if they are either an individual with a Fixed or Growth Mindset. He then divides the students into two groups based on the two respective Mindsets and collects their past Year 11 test results.

Given below are the average test scores for three subjects (Maths, English and Physics) for three terms tests and their standard deviations.

Average marks for 3 term tests (standard deviations in parenthesis)

Group

Number of students

Maths

English

Physics

Average marks for all 3 subjects

Group 1: Fixed Mindset

100

63 (11.3)

73 (10.9)

68 (11.1)

68 (11.1)

Group 2: Growth Mindset

150

86 (7.5)

82 (7.1)

91 (7.2)

86 (7.27)

After looking at the data collected, the principal placed his Year 12 students in a series of training sessions to highlight the importance of Growth Mindset. He then ran another survey at the end of the year for the students he had categorised under ‘Fixed Mindset’ and collected their test marks for the same subjects in Year 12. These statistics are given below.

Average marks for 3 term tests (standard deviations in parenthesis)

Group

Number of students

Maths

English

Physics

Average marks for all 3 subjects

Group 1: Fixed Mindset

100

81 (9.1)

83 (8.9)

88 (8.8)

84 (9.21)

Note: Assume that these samples are drawn from normally distributed populations, which have equal variances. You may use EViews to complete this question.

QM2 Assignment 1 Summer 2016 Page 4

i Using relevant data, infer that the average marks in the three subjects (Maths, English and Physics) are statistically different for each group.

[4 marks]

ii Perform a statistical inference to determine if students with Growth Mindset perform better than those who have a Fixed Mindset, on average (again, only use most relevant data).

[4 marks]

iii Is there any statistical evidence suggesting that the series of training sessions were successful (and hence the performance of those with Fixed Mindset improved)?

[3 marks]

iv Briefly explain the difference between the tests you performed in parts i, ii and iii above.

[2 marks]

v Briefly explain why parametric tests are preferred to non-parametric tests, as well as, when and why non-parametric tests are performed instead of parametric tests.

[2 marks]

END OF ASSIGNMENT