Holooly Plus Logo
Holooly Plus Logo

Question 1.PR.15: Using the data from Problem 1.13: (a) Calculate the average ...

Using the data from Problem 1.13:
(a) Calculate the average rate of growth of the series.
(b) Calculate the standard deviation around the average growth rate.
(c) Does the series appear to be more or less volatile than the investment figures used in the chapter? Suggest reasons.

The blue check mark means that this solution has been answered and checked by an expert. This guarantees that the final answer is accurate.
Learn more on how we answer questions.

(a) 1.81% p.a. (but 4.88% p.a. between 1975 and 1989).
(b) 0.187 (around the arithmetic mean).
(c) Registrations appear more volatile, as measured by the cv (10.33 for car registrations, 0.816 for investment). Possible reasons: investment covers several categories and fluctuations in one may offset those in another; the registrations series is shorter, so a big random fluctuation has a larger effect; investment is nominal and the price influence may help to smooth out the series.

Related Answered Questions

Question: 1.PR.5

The distribution of marketable wealth in 1979 in the UK is shown in the table below (taken from Inland Revenue Statistics, 1981, p. 105):Draw a bar chart and histogram of the data (assume the final class interval has a width of 200 000). Comment on the differences between the two. Comment on any ...

Verified Answer:

The difference between bar chart and histogram sho...
Question: 1.PR.9

A motorist keeps a record of petrol purchases on a long journey, as follows: Calculate the average petrol price for the journey. ...

Verified Answer:

57.62 pence/litre.
Question: 1.PR.11

On a test taken by 100 students, the average mark is 65, with variance 144. Student A scores 83, student B scores 47. (a) Calculate the z-scores for these two students. (b) What is the maximum number of students with a score either better than A’s or worse than B’s? (c) What is the maximum ...

Verified Answer:

(a) z = 1.5 and −1.5 respectively. (b) Using Cheby...
Question: 1.EX.1

The following table shows the total numbers (in millions) of tourists visiting each country and the numbers of English tourists visiting each country:(a) Draw a bar chart showing the total numbers visiting each country.(b) Draw a stacked bar chart, which shows English and non-English tourists ...

Verified Answer:

Question: 1.EX.2

Given the following data:(a) Draw both a bar chart and a histogram of the data and compare them.(b) Calculate cumulative frequencies and draw a cumulative frequency diagram. ...

Verified Answer:

Question: 1.EX.4

(a) For the data in Exercise 2, calculate the inter-quartile range, the variance and the standard deviation. (b) Calculate the coefficient of variation. (c) Check if the relationship between the IQR and the standard deviation stated in the text is approximately true for this distribution. ...

Verified Answer:

(a)  Q1 relates to observation 27.5 (= 110/4). Thi...
Question: 1.EX.6

(a) Using the data in Exercise 1.5, calculate the average level of profit over the time period and the average growth rate of profit over the period. Which appears more useful? (b) Calculate the variance of profit and compare it to the variance of sales. ...

Verified Answer:

(a)   The average profit is 35. The average rate o...
Question: 1.EX.7

(a) Once again using the data from Exercise 1.5, draw an XY chart with profits on the vertical axis, sales on the horizontal axis. Choose the scale of the axes appropriately. (b) (If using Excel to produce graphs) Right click on the graph, choose ‘Add trendline’ and choose a linear trend. This ...

Verified Answer:

Question: 1.EX.5

Given the following data:(a) Draw a multiple time series graph of the two variables. Label both axes appropriately and provide a title for the graph.b) Adjust the graph by using the right-hand axis to measure profits, the left-hand axis sales. What difference does this make? ...

Verified Answer:

Question: 1.PR.13

The following data show car registrations in the UK during 1970–91 (source: ETAS, 1993, p. 57):a) Draw a time-series graph of car registrations.Comment upon the main features of the series.(b) Draw time-series graphs of the change in registrations, the (natural) log of registrations, and the ...

Verified Answer:

(a)  Strong upwards trend for 1974–1989, but subst...