Concept explainers
a.
Whether the U.S Government received more money or less money over the period 1995-2000 without doing any calculations.
a.
Answer to Problem 45E
The U.S. Government received more money than it spent over the period 1995-2000
Explanation of Solution
Given: consider the table provided in the question,
Compare each year of deficit with each year of surplus, that is,
1995 with 2000 ……(1)
1996 with 1999 ……(2)
1997 with 1998 ……(3)
In (1), (2) and (3), money received in the years of surplus is more than money spent in the years of deficit.
Conclusion:
The U.S. Government received more money than it spent over the period 1995-2000
b.
To calculate: the overall surplus or deficit
b.
Answer to Problem 45E
The U.S. Government received an overall surplus of $137 Billion
Explanation of Solution
Given: consider the table provided in the question,
Calculation:
Add all the values of surplus or deficit in the table,
The resultant value is positive, therefore, the Government received more than it spent.
Conclusion:
Hence, the U.S. Government received an overall surplus of $137 Billion
c.
the mean annual surplus or deficit of the period 1995-2000.
c.
Answer to Problem 45E
The mean annual surplus is $22.8 billion
Explanation of Solution
Given: Consider the table provided in the question,
Concept Used:
Calculation:
In the provided data,
Total sum = $136.7, that is, the total surplus earned by the U.S. Government.
n = 6, that is, number of years in the provided period.
Evaluate the values in the formula,
Conclusion:
hence, the mean annual surplus of the period 1995-2000 is $22.8 billion.
d.
To determine: the median annual surplus or deficit of the period 1995-2000.
d.
Answer to Problem 45E
The median annual surplus is $23.6 billion
Explanation of Solution
Given: Consider the table provided in the question,
Calculation:
Arrange the provided surplus and deficit values from the table in ascending order, that is, smallest to the largest,
-164.0, -107.5, -22.0, 69.2, 124.6, 236.4
Since, the number of values is even, find the first mid-value.
Next find the second term,
Now, calculate the average of 3rd and 4th values,
Median annual surplus is more than mean annual surplus
Conclusion:
hence, the median annual surplus of the period 1995-2000 is $23.6 billion.
Chapter 2 Solutions
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