Suppose you are Chris Oliver. You have just confirmed that, for all practical purposes, Mrs. Bellawill be unable to work at all during the next ten years, including all of 2006. Write a report, addressed to Alex Ivy, Chief Administrator of Craft Supplies, which covers the questions below. Be sure to follow the guidelines for writing a report found in the Gateway Web Site.
Q. 1.The data from Exhibit 3 is also in the Excel file income.xls on the course website. Use Excel, along with this file, to determine Mrs. Bella’s real income for the last fifteen years.Do this by first converting each price index from percent by dividing by 100. Then, divide gross income by your converted (adjusted) price index. Using Excel, find the mean, median, standard deviation, and variance of her past real income. Explain the meaning of these statistics. Can you use mean income to forecast future earnings? Take into account both statistical and non-statistical considerations.
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