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Get Full Access to Stats: Data And Models - 4 Edition - Chapter 6 - Problem 4e
Get Full Access to Stats: Data And Models - 4 Edition - Chapter 6 - Problem 4e

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# Disk drives 2014 Disk drives have been getting larger.

ISBN: 9780321986498 70

## Solution for problem 4E Chapter 6

Stats: Data and Models | 4th Edition

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Problem 4E

Problem 4E

Disk drives 2014 Disk drives have been getting larger. Their capacity is now often given in terabytes (TB) where 1 TB = 1000 gigabytes, or about a trillion bytes. A search of prices for external disk drives on Amazon.com in early 2014 found the following data:

a) Prepare a scatterplot of Price against Capacity.

b) What can you say about the direction of the association?

c) What can you say about the form of the relationship?

d) What can you say about the strength of the relationship?

e) Does the scatterplot show any outliers?

Step-by-Step Solution:
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Macroeconomics March 14, 2016  Measuring the Macro-Economy - How is the economy doing - How do we know - National Income Accounting: looks at accounting data for entire economy - Most important measure of national income accounting is GDP - Gross domestic product: total market value of all final goods and services produced in the US in a calendar year  Gross Domestic Product - Market value means prices used for tally (add up prices) so, GDP totals up prices of stuff produced - 2015 NOMINAL GDP- - \$18.1 Trillion - Nominal- current output GDP in current places, unadjusted for inflation increases the price level overtime - Unadjusted= Nominal know both terms - Nominal figures are problematic if idea is to measure real changes in stuff produced  Nominal vs. Real - Nominal GDP: current output in current places unadjusted for inflation increases in price level overtime - Real GDP: GDP that has been adjusted for price level changes, it reflects changes in output more clearly Dishes Price Nominal GDP Year 1 3 3 \$9 Year 2 3 4 \$12 - Didn’t produce more but increase in Nominal GDP - A price index is used to convert nominal to real GDP - Nominal GDP is put in base year prices Dishes Price Real GDP Year 1 3 3 \$9 Year 2 3 4 \$12 The first red arrow is the current output ; and the second arrow pointing down is the base year price showing the REAL GDP for YEAR 2 = \$9… - WE ALWAYS WANT/PREFER REAL GDP  Understanding GDP - Final not intermediate = goods produced for further processing - Avoids Double Counting - GOAL IS MORE - How much should GDP grow each year  2%-5% (short-run fluctuations) per year - Long run trend for US GDP growth is 3% - So, what is a “bad” growth rate {other words for bad would be: sluggish, fatigue, anemic, etc…} 1-2%, but it is still positive - Recession- standard rule of thumb is 2 consecutive quarters of falling real GDP [6 months] Quarter every 3 months

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