NEED A SOLUTION FOR PART d.)... IT IS IN BOLD... HELP! It is expected that the a
ID: 3004689 • Letter: N
Question
NEED A SOLUTION FOR PART d.)... IT IS IN BOLD... HELP!
It is expected that the average amount of spending would vary from area to area across the country when there is implementation of expansionary fiscal policy. Five areas were observed during the latest policy change, and each area was subjected to the same stimulus package amount. The spending habits which is measured by the marginal propensity to consume (MPC), the ratio of change in consumption to the change in disposable income, was recorded. This data is shown under the table provided
a). Does the data provide sufficient evidence to indicate a difference in mean spending among these five groups using = .01?
b). Determine which areas differ in average spending.
c). Is there evidence of a difference in the variation in spending among the five areas?
d). Which area indicates the stimulus having the biggest impact? the least? Based on this data, do you think the stimulus was warranted? Briefly explain.
a b c d e .7 .8 1 1 .5 .6 .6 1.1 1 .6 .9 1 1.2 1.1 .6 .6 .8 .9 1 .4Explanation / Answer
Biggest impact was on D and least impact was on E
As in the D the ratio is 1 or more means consumption is almost more than disposable income which measn they are either borrowing or spending completely
As in the E the ratio is less than 1 and they are saving more compared to others .
Ya it was because it can expalin with the ratio that how much is saved and how much spend.
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