Gross Investment $18
National Income 100
Net Exports 2
Personal Income 85
Personal Consumption Expenditures 70
Saving 5
Purchases 20
Net Domestic Product 105
Statistical Discrepancy 0

Refer to the accompanying data (all figures in billions of dollars). Disposable income is:

$75 billion

Explanation:

Recall that

Disposable Income = Personal Income - (Personal taxes + other deductions)

OR

Disposable income = Consumption + Savings.

Given that

Personal Consumption expenditure = $70 billion

Savings = $5billion

We use the second formula.

Thus,

Disposable income = 70 + 5

= 75

Hence, from the given set of data, disposable income = $75 billion.

a. 2.13. b. (30.53, 34.79). c. The mean prices for two in mid-range restaurants in Hong Kong are relatively less than those in Tokyo restaurants.

Explanation:

The size of the sample is 42 and the mean of the sample is ∑ = 32.66 and the standard deviation of the sample (σ) is √[∑(-μ)^2 - 1] = √46.6092 = 6.8271

a. α = 1 - (95/100) = 0.05; α/2 = 0.025; the degree of freedom = n-1 = 42-1 = 41; tα/2 = t0.025 = 2.02. Thus, the error margin = (tα/2)*(σ/√n) = 2.02*(6.83/√42) = 2.1279

b. Lower level limit = 32.66 - 2.1279 = 30.5321; Upper level limit = 32.66+2.1279 = 34.7879. The interval estimate = (mean± margin of error) = (30.53, 34.79).

c. The mean prices for two in mid-range restaurants in Hong Kong are relatively less than those in Tokyo restaurants.