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A boom in U.S. bankruptcies. The American Bankruptcy
Chapter , Problem 148SE(choose chapter or problem)
A boom in U.S. bankruptcies. The American Bankruptcy Institute and the National Bankruptcy Research Center monitor the number of consumer bankruptcy filings each month. The table on the next page lists the number of bankruptcy filings for each of the first 10 months of a recent year.
a. Explain why the data in the table represent time series data.
b. Construct a time series plot for the monthly number of bankruptcy filings.
c. Do you detect a trend in the time series plot? Explain.
Questions & Answers
QUESTION:
A boom in U.S. bankruptcies. The American Bankruptcy Institute and the National Bankruptcy Research Center monitor the number of consumer bankruptcy filings each month. The table on the next page lists the number of bankruptcy filings for each of the first 10 months of a recent year.
a. Explain why the data in the table represent time series data.
b. Construct a time series plot for the monthly number of bankruptcy filings.
c. Do you detect a trend in the time series plot? Explain.
ANSWER:
Problem 148SE
A boom in U.S. bankruptcies. The American Bankruptcy Institute and the National Bankruptcy Research Center monitor the number of consumer bankruptcy filings each month. The table on the next page lists the number of bankruptcy filings for each of the first 10 months of a recent year.
a. Explain why the data in the table represent time series data.
b. Construct a time series plot for the monthly number of bankruptcy filings.
c. Do you detect a trend in the time series plot? Explain.
Month |
Number of bankruptcy filings |
January |
66,050 |
February |
76,120 |
March |
86,165 |
April |
92,291 |
May |
91,214 |
June |
82,770 |
July |
94,124 |
August |
96,413 |
September |
88,663 |
October |
106,266 |
Step-by-step solution
Step 1 of 3
a) The data in the chart refers to the number of bankruptcy filings during in each month in 2008. data that are produced and monitored over time are known as time series data.