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The current state of the world economy is quite uncertain. Economic statistics that governments and other financial institutions use to project the economy imply that the world economy is shrinking. Since 2008, the state of the American economy has not been attractive. For instance, the United States economy has not registered any significant growth for the last three years. The 2011 second quarter results indicated that gross domestic product improved by 1%. At the same time, there was slight increase in business fixed investment sector. This was mainly attributed to good performance in software and equipment. In general, the economy seems to be headed for recovery (United Nations, 2010).

There were increased product and services exports as well as over growth in consumer spending. Overall federal government spending increased. This was as a result of increased government spending in military. The issue of oil and turmoil in oil producing countries especially in North Africa has contributed negatively to the economy. High energy costs mean that most sections of the economy will experience high production costs. Final products will be more costly to the consumer and thus leading to reduced consumer spending. A broader look at the state of the economy reveals that the economy is headed for a recovery. Most core sections of the economy have begun to register growth meaning that soon the economy will bounce back (United Nations, 2010).

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Several surveys have been conducted to determine the financial situation of United States. Executives' sanguinity about the budget has continued to propagate over the past months, rendering to the outcomes of a McKinsey Quarterly survey in the area. This was carried out throughout the week that U.S. stock markets hit their topmost point so far in 2009. More businesses are

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...Statistics in Economics The Rivalry: Wins per Season Phillies vs. Mets Throughout the years two teams laid the groundwork for what would be considered one of the greatest rivalries of all time. Baseball is America’s pastime and one of my favorite sports. I decided to do an in-depth statistical analysis of both team’s histories regarding wins since 1965. Surprisingly both teams, the Philadelphia Phillies and the New York Mets, have strong numbers but the Phillies came out on top when comparing both data sets. The Phillies have a mean number of wins at 79.72 and the Mets with a mean of 77.28 wins. So, by looking at these data sets from a comparative angle, the Phillies come out on top with an average of about 2-3 wins per season. Taking a look at the medians, you are able to see that Phillies also have a higher mean of 80.5 wins as opposed to the Mets’ 78 wins. By looking at the easy to find statistical values you are able to see which team has been statistically better throughout the past 45 years. After I took a look at the descriptive statistics I ran three different tests: the F-test, the t-test, and the empirical tests to test for each data set’s normality. The first test that I ran in Excel was the F-test, which is a test comparing statistical models to identify the model that best fits the population from which the data was sampled. My results of the F-test came out with a high variance for each team: the Phillies with 133.41 and the Mets with 220.21...

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...Economics 30330: Statistics for Economics Problem Set 8 - Suggested Solutions University of Notre Dame Instructor: Julio Gar´ ın Spring 2012 Hypothesis Testing (80 Points) 1. Consider the following hypothesis test: H0 : µ ≥ 20 HA : µ < 20 A sample of 40 provided a sample mean of 19.4. The population standard deviation is 2. (a) Create a 95% conﬁdence interval for the mean. We know σ, therefore we should use the z − table. This is a one-tailed (lower tail) test, so the 95% conﬁdence interval will be given then by σ x − z.05 √ , ∞ ¯ n 2 19.4 − 1.65 √ , ∞ 40 The 95% conﬁdence interval is µ ∈ [18.878, ∞). (b) What is the p-value? The p-value is the area in the lower tail. First, we calculate the z-value: z= 19.4 − 20 √ = −1.9 2/ 40 Using the normal table with z = -1.9, p-value =.0287. (c) At α = 0.01, what is your conclusion? p-value > .01, so we fail reject H0 at the 99% level. (d) What is the rejection rule using the critical value? What is your conclusion? c Reject H0 at the 99% level if z ≤ zα =-2.33. In this example, -1.9 > -2.33, so we fail to reject H0 at the 99% level. 2. Consider the following hypothesis test: H0 : µ = 15 HA : µ = 15 A sample of 50 provided a sample mean of 14.5. The population standard deviation is 3. 1 (a) Create a 95% conﬁdence interval for the mean. We know σ, therefore we should use the z − table. This is a two-tailed test, so the 95% conﬁdence interval will be given then by σ σ x − z.025 √ , x +...

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