Reference no: EM13752405
Below are data for U.S. DPI and PCE on two major components of consumer spending, motor vehicles and parts and housing and utilities.
One is a durable good and the other is comprised of housing and other services and non-durables, such as natural gas purchases. Using scatter diagrams and trendlines, generate graphs showing the relationship of each of the consumption categories to DPI and find the equation of the graph and the R squared. Use your results to answer the questions to the right.
| Year |
DPI |
Motor Vehicles and Parts |
| 1964 |
462,3 |
25,8 |
| 1965 |
497,8 |
29,6 |
| 1966 |
537,4 |
29,9 |
| 1967 |
575,1 |
29,6 |
| 1968 |
624,7 |
35,4 |
| 1969 |
673,8 |
37,4 |
| 1970 |
735,5 |
34,5 |
| 1971 |
801,4 |
43,2 |
| 1972 |
869,0 |
49,4 |
| 1973 |
978,1 |
54,4 |
| 1974 |
1 071,7 |
48,2 |
| 1975 |
1 187,3 |
52,6 |
| 1976 |
1 302,3 |
68,2 |
| 1977 |
1 435,0 |
79,8 |
| 1978 |
1 607,3 |
89,2 |
| 1979 |
1 790,9 |
90,2 |
| 1980 |
2 002,7 |
84,4 |
| 1981 |
2 237,1 |
93,0 |
| 1982 |
2 412,7 |
100,0 |
| 1983 |
2 599,8 |
122,9 |
| 1984 |
2 891,5 |
147,2 |
| 1985 |
3 079,3 |
170,1 |
| 1986 |
3 258,8 |
187,5 |
| 1987 |
3 435,3 |
188,2 |
| 1988 |
3 726,3 |
202,2 |
| 1989 |
3 991,4 |
207,8 |
| 1990 |
4 254,0 |
205,1 |
| 1991 |
4 444,9 |
185,7 |
| 1992. |
4 736,7 |
204,8 |
| 1993 |
4 921,6 |
224,7 |
| 1994 |
5 184,3 |
249,8 |
| 1995 |
5 457,0 |
255,7 |
| 1996 |
5 759,6 |
273,5 |
| 1997 |
6 074,6 |
293,1 |
| 1998 |
6 498,9 |
320,2 |
| 1999 |
6 803,3 |
350,7 |
| 2000 |
7 327,2 |
363,2 |
| 2001 |
7 648,5 |
383,3 |
| 2002 |
8 009,7 |
401,3 |
| 2003 |
8 377,8 |
401,0 |
| 2004 |
8 889,4 |
403,9 |
| 2005 |
9 277,3 |
408,2 |
| 2006 |
9 915,7 |
394,8 |
| 2007 |
10 423,6 |
399,9 |
| 2008 |
11 024,5 |
339,3 |
| 2009 |
10 722,4 |
316,0 |
| 2010 |
11 127,1 |
342,7 |
| 2011 |
11 549,3 |
373,6 |
| 2012 p. |
11 931,2 |
407,0 |
|
|
|
| Year |
DPI |
Housing and Utilities |
| 1964 |
462,3 |
72,1 |
| 1965 |
497,8 |
76,6 |
| 1966 |
537,4 |
81,2 |
| 1967 |
575,1 |
86,3 |
| 1968 |
624,7 |
92,7 |
| 1969 |
673,8 |
101,0 |
| 1970 |
735,5 |
109,4 |
| 1971 |
801,4 |
120,0 |
| 1972 |
869,0 |
131,2 |
| 1973 |
978,1 |
143,5 |
| 1974 |
1 071,7 |
158,6 |
| 1975 |
1 187,3 |
176,5 |
| 1976 |
1 302,3 |
194,7 |
| 1977 |
1 435,0 |
217,8 |
| 1978 |
1 607,3 |
244,3 |
| 1979 |
1 790,9 |
273,4 |
| 1980 |
2 002,7 |
311,8 |
| 1981 |
2 237,1 |
352,0 |
| 1982 |
2 412,7 |
387,0 |
| 1983 |
2 599,8 |
421,2 |
| 1984 |
2 891,5 |
458,3 |
| 1985 |
3 079,3 |
500,7 |
| 1986 |
3 258,8 |
535,7 |
| 1987 |
3 435,3 |
571,8 |
| 1988 |
3 726,3 |
614,5 |
| 1989 |
3 991,4 |
655,6 |
| 1990 |
4 254,0 |
696,4 |
| 1991 |
4 444,9 |
735,5 |
| 1992. |
4 736,7 |
771,2 |
| 1993 |
4 921,6 |
814,5 |
| 1994 |
5 184,3 |
866,5 |
| 1995 |
5 457,0 |
913,8 |
| 1996 |
5 759,6 |
961,2 |
| 1997 |
6 074,6 |
1 009,9 |
| 1998 |
6 498,9 |
1 065,2 |
| 1999 |
6 803,3 |
1 125,0 |
| 2000 |
7 327,2 |
1 198,6 |
| 2001 |
7 648,5 |
1 287,7 |
| 2002 |
8 009,7 |
1 334,8 |
| 2003 |
8 377,8 |
1 393,9 |
| 2004 |
8 889,4 |
1 462,4 |
| 2005 |
9 277,3 |
1 582,6 |
| 2006 |
9 915,7 |
1 686,2 |
| 2007 |
10 423,6 |
1 756,2 |
| 2008 |
11 024,5 |
1 831,0 |
| 2009 |
10 722,4 |
1 871,6 |
| 2010 |
11 127,1 |
1 891,9 |
| 2011 |
11 549,3 |
1 929,9 |
| 2012 p. |
11 931,2 |
1 965,9 |
Questions:
a) Plot the data using a scatterplot.
b) Find the equation that shows the relationship between motor vehicles and parts expenditure (PCE) and DPI (insert a linear trendline and show the equation on the scatterplot).
c) Find the equation that shows the relationship between housing and utilities expenditures (PCE) and DPI (insert a linear trendline and show the equation on the scatterplot).
d) What are the R squares for the equations? Which one is better? Can you provide an economic rationale to explain the difference?
e) Use the equations to calculate estimated values for both types of expenditures for 2011 and 2012. How well did the equations predict values for 2011 and 2012?
f) If DPI increases at a rate of 2.2% in 2013 and then at a rate of 2.6% in 2014, what are the predicted values for consumer spending on motor vehicles and parts? On housing and utilities?
|
Discussion of the prevention of cyber-attacks
: Discussion of encryption techniques that can be used for the wireless network and the selection and justification of a proper technique for this facility and Discussion of the prevention of cyber-attacks and the proper maintenance needed to achieve..
|
|
Write an essay on idealism and realism
: Write an essay on Idealism vs. Realism. Select two countries that are currently in the news, and briefly explain the situation between them.
|
|
Discuss the evolution of information technology
: Research, identify and discuss the evolution of Information Technology and the impact it has had on businesses
|
|
Direct materials price and usage variances
: Wheeler Corporation produces and sells special eyeglass straps for sporting enthusiasts. For the year, the company budgeted for production and sales of 1,200 straps. However, the company produced and sold just 1,100 straps.
|
|
Relationship between housing and utilities expenditures
: Find the equation that shows the relationship between motor vehicles and parts expenditure (PCE) and DPI - What are the R squares for the equations? Which one is better
|
|
Analyze the required elements of a communication plan
: Analyze the required elements of a communication plan and Describe the different organizational structures as it relates to project management (i.e., functional, project-based, matrix)
|
|
Experienced a number of out-of-stock situations
: Santorini Corporation has experienced a number of out-of-stock situations with respect to its finished-goods inventories. Inventory at the end of May, for example, was only 50 units—an all-time low.
|
|
How many members does each senate have
: How many members does each senate have?
|
|
Decrease cigarette smoking
: You are the director of patient services for a federally qualified health center. The department of health and human services (HHS) has announced a grant for health centers like yours to run any one of the following three health promotion programs..
|