Statistical Methods in Economics Coursework Example | Topics and Well Written Essays - 1000 words

Statistical Methods in Economics - Coursework Example The scheme in particular was designed to favour the usage of bicycle for a short period usually less than 30 minutes. In addition, Transport for London believes that about 0.5% of all cycle journeys start or end at Queen Marys, Mile End docking station. With this statistics in mind, the main objective of this research is 1) estimate the average length of bicycle hire and 2) to estimate the proportion of journeys taking place from and to the â€Å"Queen Marys, Mile End† docking station. In order to carry out this research as a way of organization, section 1 will provide a brief explanation of how the research was be organized, section 2 will look at two unbiased estimators and use them to provide an estimate of: the average length of the bike hire and the proportion of bike journeys taking place from and to the â€Å"Queen Marys, Mile End â€Å"docking station. Section 3 on the other hand will look at the two confidence intervals that have a high probability of: capturing the average length of the bike hire and the actual proportion of bike rides taking place from and to the â€Å"Queen Marys, Mile End â€Å"docking station. Section 4 will detail a hypothesis test to test whether the average length of the bike hire is consistent with Transport for London expectation that the pricing scheme gives incentives to users to hire the bikes for no longer than 30 minutes. Finally Section 5 will evaluate a hypothesis test to test whether the proportion of bike rides taki ng place at the â€Å"Queen Marys, Mile End† docking station is greater than the 0.5% expected by Transport for London. Data containing the information was obtained from London transport. The stratified sampling was done. The data was divided into strata of 100 for 1000 samples then a simple random sampling was done so to give each area an equal opportunity representation. After that, the probability of success will be noted, and then 95% and 99% confidence level will be used to estimate