ECO 500: Excel Assignment One
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.
Data
Year
Motor Vehicles and
Parts
DPI
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
Questions:
a) Plot the data using a scatterplot.
b) Find the equation that shows the rela
c) Find the equation that shows the rela
d) What are the R squares for the equati
e) Use the equations to calculate estima
f) If DPI increases at a rate of 2.2% in 20
Answers:
a)
b)
c)
d)
e)
f)
Motor Vehicles and Parts
2013
2014
Housing and Utilities
2013
2014
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
11,931.2
407.0
p
2012 .
Year
Housing and
Utilities
DPI
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
11,931.2
1,965.9
p
2012 .
Source: Economic Report of the President, 2013. Appendix B.
ta using a scatterplot.
uation that shows the relationship between motor vehicles and parts expenditure (PCE) and DPI (insert a linear trendline and show the e
uation that shows the relationship between housing and utilities expenditures (PCE) and DPI (insert a linear trendline and show the equa
he R squares for the equations? Which one is better? Can you provide an economic rationale to explain the difference?
uations to calculate estimated values for both types of expenditures for 2011 and 2012. How well did the equations predict values for 201
ases 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
Vehicles and Parts
sing and Utilities
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