Question

A department of transportation’s study on driving speed and miles per gallon for midsize automobiles resulted in the following data:

speed (miles per hour)	30	50	40	55	30	25	60	25	50	55
Miles per Gallon	28	25	25	23	30	32	21	35	26	25

Answer the following questions and calculate the following descriptive statistics:

a) What type of data is it? (cross-sectional, time-series, or panel)

b) How many observations in this data?

c) Identify types of variables (Quantitative vs. Categorical)

d) Calculate frequency distributions for both variables and complete the following tables:

Miles per Gallon:	Frequency distribution	Relative freq. distribution	Cumulative freq. distribution
20-26
25-29
30+

Speed	Frequency distribution	Relative freq. distribution	Cumulative freq. distribution
20-29
30-39
40-49
50+

e) Construct a histogram for SPEED variable :

Answer 1

a) It is panel data as it records variables with respect to a unit of measure (speed- mile per hour, Miles per gallon)

b) 10 observations are there in the data

c) Quantitative and continuous as speed and miles needs to be measured on a continuum

d)

Miles per Gallon:	Frequency distribution	Relative freq. distribution	Cumulative freq. distribution
20-24	2	0.2	2
25-29	5	0.5	7
30+	3	0.3	10

Speed	Frequency distribution	Relative freq. distribution	Cumulative freq. distribution
20-29	2	0.2	2
30-39	2	0.2	4
40-49	1	0.1	5
50+	5	0.5	10

e)

4 Frequency distribution 0 20-29 30-39 40-49 50+ Speed