Consider the variable mean amount per transaction in the Home Depot data presented here. This variable indicates,

Question:

Consider the variable mean amount per transaction in the Home Depot data presented here. This variable indicates, for example, that the average customer spent $39.13 on goods during a store visit in 1993. By 2018 this amount increased to $65.74. During that same period the Consumer Price Index (CPI) as reported by the Bureau of Labor Statistics increased from 144.5 to 251.107. Convert the CPI to a 1993 base, as described on page 620 in Chapter 17 and convert the mean amount per transaction to 1993 dollars. Develop a linear trend equation for the constant 1993 dollars of the mean amount per transaction. Is it reasonable that the trend is linear? Can we conclude that the value of the amount the customer spent is less?

Associates Net Sales Mean Amount Year ($ million) Time (000) per Transaction CPI 1993 50.6 9,239 39.13 144.500 1994 67.3 12,477 41.29 148.200 1995 3 80.8 15,470 41.78 152.400 1996 4 98.1 19,535 42.09 156.900 1997 124.4 24,156 43.63 160.500 1998 156.7 30,219 45.05 163.000 1999 7 201.4 38,454 47.87