In an Effort to Decide If There Is an Association

question 118

Essay

In an effort to decide if there is an association between the year of a postal increase and the new postal rate for first class mail, the data were gathered from the United States Postal Service. In 1981, the United States Postal Service changed their rates on March 22 and November 1. This information is shown in the table below.

$\begin{array}{|c|c|}\hline \text {Year} & \text {Rate} \\\hline 1971 & 0.08 \\\hline 1974 & 0.10 \\\hline 1975 & 0.13 \\\hline 1978 & 0.15 \\\hline 1981 & 0.18 \\\hline 1981 & 0.20 \\\hline 1985 & 0.22 \\\hline 1988 & 0.25 \\\hline 1991 & 0.29 \\\hline 1995 & 0.32 \\\hline\end{array}$

-Make a scatterplot and describe the association between the year and the first class postal rate.

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Definitions:

Stock Dividend

A dividend payment made in the form of additional shares rather than cash.

Value of Each Share

The worth of a single share of stock in a company, determined by the market or through valuation techniques.

Residual Dividend Policy

A strategy where dividends are paid out from the residual or leftover equity after all necessary operating expenses and working capital needs are met.

Investment Needs

The financial goals or objectives that require the allocation of capital in securities or assets.