Answer the Next Four Questions Based on the Following Data

question 21

Essay

Answer the next four questions based on the following data using year 1 as the base year.All dollars are in billions. (a) Find real income in year 4.(b) What was the percentage rise in prices between years 1 and 3?
(c) What was the percentage rise in prices between years 2 and 4?
(d) What was the increase in real income from year 3 to year 4 in %?

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Definitions:

Goodness-of-fit Test

Statistical tests that measure how well observed sample data fits a distribution from a population with a specified distribution.

Categorical Variable

A type of variable that can take on one of a limited, and usually fixed, number of possible values, assigning each individual or observation to a particular group or category.

Degrees of Freedom

The number of independent values or quantities which can vary in the analysis of statistical parameters.

Chi-square Statistic

A statistical measure used in tests of independence or goodness of fit, quantifying how expected counts compare to observed counts.