Chapter 2.3, Problem 27E

Military spending: The following table presents the amount spent, in billions of dollars, on national defense by the U.S. government every other year for the years 1951 through 2017. The amounts are adjusted for inflation, and represent 2017 dollars.

1. Construct a time-series plot for these data.
2. The plot covers seven decades, from the 1950s through the period 2010—2017. During which of these decades did national defense spending increase, and during which decades did it decrease?
3. The United States fought in the Korean War, which ended in 1953. What effect did the end of the war have on military spending after 1953?
4. During the period 1965—1963, the United States steadily increased the number of troops in Vietnam from 23,000 at the beginning of 1965 to 537.000 at the end of 1968.

Beginning in 1969, the number of Americans in Vietnam was steadily reduced, with the last of them leaving in 1975. How is this reflected in the national defense spending from 1965 to 1975?

To determine

To construct:A time-series plot of the given data.

Explanation of Solution

Given information:

The dataset:

Year	Spending
1951	503.1
1953	531.9
1955	411.9
1957	438.2
1959	432.4
1961	437.6
1963	470.9
1965	447.1
1967	569.3
1969	572.6
1971	476.8
1973	436.9
1975	404.0
1977	427.9
1979	424.4
1981	475.1
1983	568.3
1985	608.3
1987	592.1
1989	568.9
1991	560.1
1993	474.6
1995	429.8
1997	409.8
1999	416.9
2001	442.6
2003	589.0
2005	633.4
2007	718.3
2009	758.4
2011	726.0
2013	608.5
2015	621.2
2017	650.0

Graph:

A time-series plot for the given data is given by

To determine

To find:The decade during which the national defence spending increasing and the decade during which the national defence spending increasing.

Answer to Problem 27E

The trend in the vacancy rate during the time period from 2012 to 2015 is decreasing.

Explanation of Solution

Solution:

A time-series plot for the given data is given by

From the time-series plot, we can see that during 1960s, 1980s and 2000s, the national defence spending is increasing and during 1950s, 1970s, 1990s and 2010s, the national defence spending is decreasing

Hence,

Increased decade: 1960s, 1980s and 2000s

Decreased decade: 1950s, 1970s, 1990s and 2010s.

To determine

To find: The effects of the end of the war have on military spending after 1953.

Answer to Problem 27E

The effects of the end of the war have on military spending after 1953 is that it caught a big decrease.

Explanation of Solution

Solution:

A time-series plot for the given data is given by

From the time-series plot, we can see that after 1953, there was causing a big decrease in the military spending. The military spending was falling from 531.9 to 411.9 during 1953-1955.

Hence, the effects of the end of the war have on military spending after 1953 is that there caused a big decrease.

To determine

To explain: The reflection in the national defence spending from 1965 to 1975.

Answer to Problem 27E

The national defence spending is increased from 1965 to 1969 and then decreased from 1969 to 1975.

Explanation of Solution

Given information: The following table presents the amount spent, in billions of dollars, on national defence by the U.S. government every other year for the years 1951 through 2017. The amounts are adjusted for inflation, and represent 2017 dollars.

Year	Spending
1951	503.1
1953	531.9
1955	411.9
1957	438.2
1959	432.4
1961	437.6
1963	470.9
1965	447.1
1967	569.3
1969	572.6
1971	476.8
1973	436.9
1975	404.0
1977	427.9
1979	424.4
1981	475.1
1983	568.3
1985	608.3
1987	592.1
1989	568.9
1991	560.1
1993	474.6
1995	429.8
1997	409.8
1999	416.9
2001	442.6
2003	589.0
2005	633.4
2007	718.3
2009	758.4
2011	726.0
2013	608.5
2015	621.2
2017	650.0

During the period 1965-1968, the United States steadily increased the number of troops in Vietnam from 23,000 at the beginning of 1965 to 537,000 at the end of 1968. Beginning in 1969, the number of Americans in Vietnam was steadily reduced, with the last of themleaving in 1975.

A time-series plot for the given data is given by

From 1965 to 1975, the national defence spending is increasing from 1965 to 1969 and then decreasing from 1969 to 1975.

Hence, the national defence spending is increased from 1965 to 1969 and then decreased from 1969 to 1975.