Microeconomics: Principles and Policy (MindTap Course List)
13th Edition
ISBN: 9781305280618
Author: William J. Baumol, Alan S. Blinder
Publisher: Cengage Learning
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Question
Chapter 1A, Problem 1TY
To determine
To draw:
A 2-variable diagram and measure the slope of line along with the meaning of the numbers.
Expert Solution & Answer
Explanation of Solution
Slope:
The slope represents the steepness of line or it is the ratio of the change in values on the Y-axis with respect to the X-axis.
The following graph plots the given data:
The slope of the line is the same as the horizontal change divided by vertical change.
The slope 4 shows that every 100 enrollment has 25 students of economics each year.
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Descriptive statistics provide details about the Y variable, based on the sample for the 10-year period. Here, you use Excell or manually compute
Mean or the average income per capita. Interpret the meaning of average income per capita.
Draw the line chart showing the educational performance over the time-period of your study. Label the Vertical axis as Y performance and X axis as the explanatory variable (X1) . Do the same thing between Y and X2
Empirical/ Inferential Statistics: Here, use the sample information to perform the following:
Draw the Scatter plot and impose the trend line: showing the Y variable and explanatory variables ( X1).
Draw the scatter plot and impose the tend line: Showing Y and X2.
Does your evidence (data) support your theory? Refer to the trend line: Is the relationship positive or negative as expected?
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Chapter 1A Solutions
Microeconomics: Principles and Policy (MindTap Course List)
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