Inflation measures change the prices of a 'basket' of goods and services the average household purchases. Inflation is an important indicator of economic performance because it measures how the purchasing power of incomes changes over time. Individual income is calculated as the country's total income (Gross Domestic Product, GDP) divided by the total population. You are given time-series data on Australia's price level and income (per capita) from 1981 to 2020[1]. Use this data to answer the following questions.

1. Calculate the highest, lowest, median, and mean for:

(a) Australian price level data from 1981 to 2020

(b) Split data series into decades and calculate the mean price level for each decade separately.

(c) Compare the mean price level in each decade using an appropriate graph.

(d) What do you conclude in (a), (b), and (c)?

1. Repeat (1) using time series of Australian income (per capita).
2. Calculate the range, variance, and standard deviation for price level and income (per capita). Interpret the results.
3. Calculate a simple index showing a change in price level and income (per capita) from 1981 to 2020, using 2000 as the base year.What conclusions can you draw from the results?
4. Show the quantitative time-series data using a histogram. Interpret the shape of the histogram.
5. Draw a scatter plot using price level and income (per capita) data with a trend line. Is there any relationship reflected between the two variables? Explain why or why not.

You will present your findings in the form of a report. The report should have the following at minimum:

• Title
• Abstract/Executive Summary.
• Table of Contents.
• Introduction.
• Body.
• Conclusion & Recommendation.
• Appendices.
• List of References.

[1]Data has been extracted from World Development Indicators, WDI

https://databank.worldbank.org/source/world-development-indicators

Other Details

Due date	11.55pm Friday, Week 11
Word limit	2000
Other requirements	For the report: Use 12 pt font your document to allow room for feedback State your name and student number in the document header State the word count in the document header Include a bibliography Comply with the APA referencing style
Submission format	PDF file (.pdf) or Word (.doc) only
Submission method	Via the dropbox on the Course Hub
Marking criteria	See rubric set out in the appendix