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##### ECO500 excel assignment 1

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Question;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.;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?;Data;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?;Year;DPI;Motor;Vehicles and Parts;Answers;1964.;462.3;25.8;a);1965.;497.8;29.6;b);1966.;537.4;29.9;c);1967.;575.1;29.6;d);1968.;624.7;35.4;e);1969.;673.8;37.4;f);1970.;735.5;34.5;Motor Vehicles and Parts;1971.;801.4;43.2;2013;1972.;869.0;49.4;2014;1973.;978.1;54.4;Housing and Utilities;1974.;1,071.7;48.2;2013;1975.;1,187.3;52.6;2014;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;Source;Economic Report of the President, 2013. Appendix B.

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