Private Gross Fixed Capital Formation as a Predictor of Gross Domestic Product

Running head: STATISTICS
Statistics
Name of the Student
Name of the University
Course ID

STATISTICS1
Table of Contents
Question 1........................................................................................................................................2
Question 2........................................................................................................................................2
Question a....................................................................................................................................2
Question b....................................................................................................................................4
Question 3........................................................................................................................................5
Question a....................................................................................................................................5
Question b....................................................................................................................................5
Question 4........................................................................................................................................6
Question a....................................................................................................................................6
Question b....................................................................................................................................7
Question c....................................................................................................................................7
Question 5........................................................................................................................................8
Question a....................................................................................................................................8
Question b..................................................................................................................................10
Question 6......................................................................................................................................10
Summary report.........................................................................................................................10
References......................................................................................................................................12

STATISTICS2
Question 1
Screenshot of the data set
Question 2
Question a
Mar-1986
Dec-1987
Sep-1989
Jun-1991
Mar-1993
Dec-1994
Sep-1996
Jun-1998
Mar-2000
Dec-2001
Sep-2003
Jun-2005
Mar-2007
Dec-2008
Sep-2010
Jun-2012
Mar-2014
Dec-2015
Sep-2017
0
5000
10000
15000
20000
25000
Private Gross Fixed Capital Formation (GFCF)
Quarter
GFCF(in $ million)
Figure 1: Movement of GFCF series

STATISTICS3
The figure above summarizes movement of gross fixed capital formation series. The
series constitutes an overall upward rising trend. The GFCF series shows very much fluctuations
in the movement. This is because gross fixed capital formation especially spending on equipment
and machinery is the most volatile component of GDP. This is because investment decision is
long term process. Once demand shifts due to cyclical fluctuation investment varies as well. For
this this reason, the series shows much fluctuation.
Mar-1986
Mar-1988
Mar-1990
Mar-1992
Mar-1994
Mar-1996
Mar-1998
Mar-2000
Mar-2002
Mar-2004
Mar-2006
Mar-2008
Mar-2010
Mar-2012
Mar-2014
Mar-2016
Mar-2018
0
100000
200000
300000
400000
500000
600000
Gross Domestic Product (GDP)
Quarter
GDP (in $ million)
Figure 2: Movement of GDP series
Like gross fixed capital formation GDP also shown an overtime increasing trend. The
series is more or less stable unlike GFCF. This is because there are various other components in
GDP other than GFCF that make GDP relatively stable.