Q1. The table provided gives data on indexes of output per hour (X) and real compensation per hour (Y) for the business and nonfarm business sectors of the U.S. economy for 1960–2005. The base year of the indexes is 1992 = 100 and the indexes are seasonally adjusted. a. Plot Y against X for the two sectors separately. b. What is the economic theory behind the relationship between the two variables? Does the scattergram support the theory? c. Estimate the OLS regression of Y on X. Note: on the table ( 1. Output refers to real gross domestic product in the sector. 2. Wages and salaries of employees plus employers’ contributions for social insurance and private benefit plans. 3. Hourly compensation divided by the consumer price index for all urban consumers for recent quarters.) Thank you!
Q1. The table provided gives data on indexes of output per hour (X) and real compensation per hour (Y) for the business and nonfarm business sectors of the U.S. economy for 1960–2005. The base year of the indexes is 1992 = 100 and the indexes are seasonally adjusted. a. Plot Y against X for the two sectors separately. b. What is the economic theory behind the relationship between the two variables? Does the scattergram support the theory? c. Estimate the OLS regression of Y on X. Note: on the table ( 1. Output refers to real gross domestic product in the sector. 2. Wages and salaries of employees plus employers’ contributions for social insurance and private benefit plans. 3. Hourly compensation divided by the consumer price index for all urban consumers for recent quarters.) Thank you!
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.6: Summarizing Categorical Data
Problem 31PPS
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Q1. The table provided gives data on indexes of output per hour (X) and real compensation per hour (Y) for the business and nonfarm business sectors of the U.S. economy for 1960–2005. The base year of the indexes is 1992 = 100 and the indexes are seasonally adjusted.
a. Plot Y against X for the two sectors separately.
b. What is the economic theory behind the relationship between the two variables? Does the scattergram support the theory?
c. Estimate the OLS regression of Y on X.
Note: on the table ( 1. Output refers to real gross domestic product in the sector. 2. Wages and salaries of employees plus employers’ contributions for social insurance and private benefit plans. 3. Hourly compensation divided by the consumer price index for all urban consumers for recent quarters.)
Thank you!
![Year or quarter
Output per hour of Compensation per
TABLE 3.6.-Productivity and related data, business sector, 1960-2005
[Index numbers, 1992=100; quarterly data seasonally adjusted]
all persons
hour3
Business
sector
Nonfarm
business
sector
Business
sector
Nonfarm
business
sector
1960
48.9
51.9
60.8
63.3
1961
50.6
53.5
62.5
64.8
1962
52.9
55.9
64.6
66.7
1963
55.0
57.8
66.1
68.1
1964
56.8
59.6
67.7
69.3
1965
58.8
61.4
69.1
70.5
1966
61.2
63.6
71.7
72.6
1967
62.5
64.7
73.5
74.5
1968
64.7
66.9
76.2
77.1
1969
65.0
67.0
77.3
78.1
1970
66.3
68.0
78.8
79.2
1971
69.0
70.7
80.2
80.7
1972
71.2
73.1
82.6
83.2
1973
73.4
75.3
84.3
84.7
1974
72.3
74.2
83.3
83.8
1975
74.8
76.2
84.1
84.5
1976
77.1
78.7
86.4
86.6
1977
78.5
80.0
87.6
88.0
1978
79.3
81.0
89.1
89.6
1979
79.3
80.7
89.3
89.7
1980
79.2
80.6
89.1
89.6
1981
80.8
81.7
89.3
89.8
1982
80.1
80.8
90.4
90.8
1983
83.0
84.5
90.3
90.9
1984
85.2
86.1
90.7
91.1
1985
87.1
87.5
92.0
92.2
1986
89.7
90.2
94.9
95.2
1987
90.1
90.6
95.2
95.5
1988
91.5
92.1
96.5
96.7
1989
92.4
92.8
95.0
95.1
1990
94.4
94.5
96.2
96.1
1991
95.9
96.1
97.4
97.4
1992
100.0 100.0
100.0
100.0
1993
100.4
100.4
99.7
99.5
1994
101.3
101.5
99.0
99.1
1995
101.5
102.0
98.7
98.8
1996
104.5
104.7
99.4
99.4
1997
106.5
106.4
100.5
100.3
1998
109.5
109.4
105.2 104.9
1999
112.8
112.5
108.0
107.5
2000
116.1
115.7
112.0
111.5
2001
119.1
118.6
113.5
112.8
2002
124.0 123.5 115.7
115.1
2003
128.7
128.0
117.7
117.1
2004
132.7
131.8
119.0
118.2
2005
135.7 134.9
120.2
119.3](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F50fbc884-4de6-47bb-a045-4d2caa13a541%2Fbc07868a-462c-41a9-9049-c95d2e411eac%2F8wuiplq_processed.png&w=3840&q=75)
Transcribed Image Text:Year or quarter
Output per hour of Compensation per
TABLE 3.6.-Productivity and related data, business sector, 1960-2005
[Index numbers, 1992=100; quarterly data seasonally adjusted]
all persons
hour3
Business
sector
Nonfarm
business
sector
Business
sector
Nonfarm
business
sector
1960
48.9
51.9
60.8
63.3
1961
50.6
53.5
62.5
64.8
1962
52.9
55.9
64.6
66.7
1963
55.0
57.8
66.1
68.1
1964
56.8
59.6
67.7
69.3
1965
58.8
61.4
69.1
70.5
1966
61.2
63.6
71.7
72.6
1967
62.5
64.7
73.5
74.5
1968
64.7
66.9
76.2
77.1
1969
65.0
67.0
77.3
78.1
1970
66.3
68.0
78.8
79.2
1971
69.0
70.7
80.2
80.7
1972
71.2
73.1
82.6
83.2
1973
73.4
75.3
84.3
84.7
1974
72.3
74.2
83.3
83.8
1975
74.8
76.2
84.1
84.5
1976
77.1
78.7
86.4
86.6
1977
78.5
80.0
87.6
88.0
1978
79.3
81.0
89.1
89.6
1979
79.3
80.7
89.3
89.7
1980
79.2
80.6
89.1
89.6
1981
80.8
81.7
89.3
89.8
1982
80.1
80.8
90.4
90.8
1983
83.0
84.5
90.3
90.9
1984
85.2
86.1
90.7
91.1
1985
87.1
87.5
92.0
92.2
1986
89.7
90.2
94.9
95.2
1987
90.1
90.6
95.2
95.5
1988
91.5
92.1
96.5
96.7
1989
92.4
92.8
95.0
95.1
1990
94.4
94.5
96.2
96.1
1991
95.9
96.1
97.4
97.4
1992
100.0 100.0
100.0
100.0
1993
100.4
100.4
99.7
99.5
1994
101.3
101.5
99.0
99.1
1995
101.5
102.0
98.7
98.8
1996
104.5
104.7
99.4
99.4
1997
106.5
106.4
100.5
100.3
1998
109.5
109.4
105.2 104.9
1999
112.8
112.5
108.0
107.5
2000
116.1
115.7
112.0
111.5
2001
119.1
118.6
113.5
112.8
2002
124.0 123.5 115.7
115.1
2003
128.7
128.0
117.7
117.1
2004
132.7
131.8
119.0
118.2
2005
135.7 134.9
120.2
119.3
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