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Time-Series Graphs. In Exercises 9 and 10, construct the time-series graph.

Gender Pay Gap Listed below are women鈥檚 median earnings as a percentage of men鈥檚 median earnings for recent years beginning with 1990. Is there a trend? How does it appear to affect women?

71.6 69.9 70.8 71.5 72.0 71.4 73.8 74.2 73.2 72.3 73.7 76.3 76.6 75.5 76.6 77.0 76.9 77.8 77.1 77.0 77.4 77.0

Short Answer

Expert verified

The following time-series graph is constructed for the women鈥檚 earnings as a percentage of men鈥檚 earnings:

It can be observed that the women鈥檚 earnings as a percentage of men鈥檚 earnings appear to be gradually increasing over the years. Therefore, there is an upward trend.

This implies that an upward trend would be beneficial for women as it will help their earnings be equal to that of men.

Step by step solution

01

Given information

Data is provided on women鈥檚 median earnings as a percentage of men鈥檚 median earnings starting from the year 1990.

71.6 69.9 70.8 71.5 72.0 71.4 73.8 74.2 73.2 72.3 73.7 76.3 76.6 75.5 76.6 77.0 76.9 77.8 77.1 77.0 77.4 77.0

02

Describe a time-series plot

A time series plot is a graph that consists of observations plotted over a certain duration of time, say years.

Graphically, the years or months are marked on the horizontal axis, and the vertical axis represents the observations. The observations are plotted as points on the graph, and then all are joined to form a trend line.

03

Sketch the time series plot

The following table shows the median of women鈥檚 earnings from 1990:

Year

1990

1991

1992

1993

1994

1995

Earnings

71.6

69.9

70.8

71.5

72.0

71.4

Year

1996

1997

1998

1999

2000

2001

Earnings

73.8

74.2

73.2

72.3

73.7

76.3

Year

2002

2003

2004

2005

2006

2007

Earnings

76.6

75.5

76.6

77.0

76.9

77.8

Year

2008

2009

2010

2011



Earnings

77.1

77.0

77.4

77.0



Follow the below steps to sketch a time series plot:

  • Draw a vertical axis starting from 69 with a one-unit increment.
  • Plot years on the horizontal axis, starting from 1990 with a two-year increment.
  • Mark the points on the graphs corresponding to the given year.
  • Join the points with a line segment.
  • Label the horizontal axis as 鈥淵ear鈥 and the vertical axis as 鈥淧ercentage of Women鈥檚 Earnings.鈥

The following time-series graph is constructed:

04

Describe the trend

The trend is an approximate increase or decrease throughout the period. By observing the plot, it can be seen that the women鈥檚 earnings have gradually increased from 1990 to 2011. There is an upward trend.

05

Explain the effect on women

The median earning in terms of percentage with respect to men鈥檚 median earnings has increased. It implies that the gender gap in earning has lowered.

Thus, there is a positive effect that will help women achieve earnings equal to those of men.

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