ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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1. (Appendix Question) The following table contains data on the relationship between saving and income.
Rearrange these data into a meaningful order and graph them on the accompanying grid. The
variable on X-axis should be (
Label variables on the graph. →
), and the variable on y-axis should be (
).
100
Income
(per year)
Saving
(per year)
so
S-20
50
50
100
20
150
40
-50
50
100
150
The relationship between income and saving is (direct, inverse; positive, negative ). That means, as
income increases, the amount of saving (increases, decreases, stays the same).
What is the slope of the line? Slope =.
The slope shows the amount of changes in savings due to the changes in income. That is, for every $1
increase in income, the amount of increase in saving will be $
The vertical intercept? (= $
when income is C
= Vertical changes + Horizontal changes
_). The intercept shows the amount of saving (dissaving) occurring
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Transcribed Image Text:1. (Appendix Question) The following table contains data on the relationship between saving and income. Rearrange these data into a meaningful order and graph them on the accompanying grid. The variable on X-axis should be ( Label variables on the graph. → ), and the variable on y-axis should be ( ). 100 Income (per year) Saving (per year) so S-20 50 50 100 20 150 40 -50 50 100 150 The relationship between income and saving is (direct, inverse; positive, negative ). That means, as income increases, the amount of saving (increases, decreases, stays the same). What is the slope of the line? Slope =. The slope shows the amount of changes in savings due to the changes in income. That is, for every $1 increase in income, the amount of increase in saving will be $ The vertical intercept? (= $ when income is C = Vertical changes + Horizontal changes _). The intercept shows the amount of saving (dissaving) occurring
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