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The accompanying data on household expendi- tures on transportation for the United Kingdom ap- peared in "Transport Statistics for Great Britain: 2002 Edition" (in Family Spending: A Report on the Family Expenditure Survey [The Stationary Of?ce, 2002]). Expenditures (in pounds per week) included costs of purchasing and maintaining any vehicles owned by members of the household and any costs associated with public transportation and leisure travel.

 

 

Year

 

AverageTransportation

Percentage

of HouseholdExpenditures

for Transportation

1990

247.20

16.2

1991

259.00

15.3

1992

271.80

15.8

1993

276.70

15.6

1994

283.60

15.1

1995

289.90

14.9

1996

309.10

15.7

1997

328.80

16.7

1998

352.20

17.0

1999

359.40

17.2

2000

385.70

16.7

a. Construct time-series plots of the transportation expense data and the percent of household expense data.

b. Do the time-series plots of Part (a) support the state- ment that follows? Explain why or why not. Statement: Although actual expenditures have been in- creasing, the percentage of the total household expenditures that go toward transportation has re- mained relatively stable.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M91724172

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