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View Full Document Getting Started
CHAPTER
1
When you have completed your study of this
appendix, you will be able to
A P P E N D I X
C H E C K L I S T
Interpret a scatter diagram, a timeseries graph, and
a crosssection graph.
1
Interpret the graphs used in economic models.
Define and calculate slope.
Graph relationships among more than two
variables.
2
3
4
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Basic Idea
A graph enables us to visualize the
relationship between two variables.
To make a graph, set two lines
perpendicular to each other:
•
The horizontal line is called the
x
axis.
•
The vertical line is called the
y
axis.
•
The common zero point is called the
origin
.
APPENDIX: MAKING AND USING GRAPHS
APPENDIX: MAKING AND USING GRAPHS
Figure A1.1 How
to make a graph
The horizontal axis
(
x
axis) measures
temperature.
The vertical axis (
y

axis) measures ice
cream consumption.
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View Full Document APPENDIX: MAKING AND USING GRAPHS
Point
A
shows that when
the temperature is 40
degrees, ice cream
consumption is only 5
gallons a day.
Point
B
shows that when
the temperature is 80
degrees, ice cream
consumption jumps to 20
gallons a day.
APPENDIX: MAKING AND USING GRAPHS
Interpreting Data Graphs
Scatter diagram
A graph of the value of one variable against
the value of another variable.
Timeseries graph
A graph that measures time on the
x
axis
and the variable or variables in which we are
interested on the
y
axis.
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View Full Document APPENDIX: MAKING AND USING GRAPHS
Trend
A general tendency for the value of a
variable to rise or fall.
Crosssection graph
A graph that shows the values of an
economic variable for different groups in a
population at a point in time.
APPENDIX: MAKING AND USING GRAPHS
Figure A1.2(a) shows a
scatter diagram.
The data for 1995 to
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This note was uploaded on 04/10/2008 for the course SOC 201 taught by Professor Ollenberger during the Spring '07 term at Cal Poly Pomona.
 Spring '07
 Ollenberger

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