Concept explainers
Consider the variable mean amount per transaction in the Home Depot data presented above. This variable indicates, for example, that the average customer spent $39.13 on goods during a store visit in 1993. By 2012 this amount increased to $54.89. During that same period the Consumer Price Index (CPI) as reported by the Bureau of Labor Statistics increased from 144.5 to 229.594. Convert the CPI to a 1993 base, as described on page 640 in the previous chapter, and convert the mean amount per transaction to 1993 dollars. Develop a linear trend equation for the constant 1993 dollars of the mean amount per transaction. Is it reasonable that the trend is linear? Can we conclude that the value of the amount the customer spent is less?
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Statistical Techniques in Business and Economics
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- Which of the following could most be considered an ordinal variable? a. Height (ft) b. Weight (kg) c. Body mass index (kg/m2) d. Education level e. Annual Income ($)arrow_forwardThe Acme School of Locksmiths has been accredited for the past 15 years. Discuss how this information might be interpreted as a a. qualitative variable b. quantitative variablearrow_forward2. Which of the following statements is false? Explain your answer. A. A price index can be used to compare changes in prices over time. B. A graph of the average monthly price of gas is an example of an index. C. Price index values are often calculated relative to a base value at a certain point in time or in a certain place. D. Index values can be greater than 100.arrow_forward
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