Question

the table shows estimated costs of raising a child born in 1996 to a low income family for the child’s first seven years. $$ \begin{array}{|l|l|l|l|l|l|l|l|} \hline \text { Tere } & 1996 & 1997 & 1998 & 1999 & 2000 & 2001 & 2002 \\ \hline \text { Comporesitos } & 5670 & 5960 & 6280 & 6730 & 7080 & 7450 & 8000 \\\ \hline \end{array} $$ During which year did the cost increase the most?

Short answer

The cost increased the most from the year 2001 to 2002.

Step-by-step solution

Understand the task

To find out the year during which cost increased most, consider the difference between each consecutive years cost. The larger the difference, the higher the increase in costs.

Calculate the difference

Review the cost for each year and the previous year and calculate the difference. The cost difference from 1996 to 1997: \(5960 - 5670 = 290\)The cost difference from 1997 to 1998: \(6280 - 5960 = 320\)The cost difference from 1998 to 1999: \(6730 - 6280 = 450\)The cost difference from 1999 to 2000: \(7080 - 6730 = 350\)The cost difference from 2000 to 2001: \(7450 - 7080 = 370\)The cost difference from 2001 to 2002: \(8000 - 7450 = 550\)

Compare and Identify

Compare all the differences and determine the greatest one. From the calculations, the largest difference is from the year 2001 to 2002.

Key concepts

Cost Comparison

Understanding how to compare costs effectively is essential in both personal and professional financial planning. In our exercise, we analyze the progressive costs of raising a child over the years for a low-income family. Cost comparison involves looking at the numerical differences between costs over time to identify trends and significant changes.

To compare the costs, we look at the cost figures year by year. We're particularly interested in finding out in which year the cost increase was the most substantial. By calculating the difference between each year's expenses, we can measure the rate of increase in costs. It’s clear that the bigger the difference from one year to the next, the higher the cost hike. This method allows us to pinpoint exact periods when there was a financial strain or when the costs were relatively stable, which is crucial for budgeting and anticipation of future expenses.

Practical Applications of Cost Comparison

• Creating a personal or family budget
• Planning for inflation and price changes
• Understanding market trends
• Making investment decisions

Line Graphs

A line graph is a powerful tool for displaying data trends over time. In educational settings, such as our textbook exercise, line graphs can help students visually track changes and patterns that numbers alone might not clearly convey. To create a line graph for the given data on the costs of raising a child, each year would be plotted on the X-axis (horizontal), and the corresponding costs would be marked on the Y-axis (vertical). By connecting these points, the line graph offers a visual representation of the cost escalation over the years.

Line graphs are not only useful for visual learners, but they also serve as a means of summarizing large amounts of data in an accessible way. As the line's slope increases or decreases, we get an immediate sense of the rate of change, saving time and simplifying analysis when compared to reviewing a table of raw data.

Benefits of Using Line Graphs

• Efficient data comparison over a period
• Immediate visualization of trends and patterns
• User-friendly for presentations and reports
• Facilitation of predictions based on past data

Data Interpretation

Data interpretation refers to the process of making sense of numerical information and identifying implications or making decisions based on that data. In our exercise, interpreting the cost data helps us to understand the financial burden of raising a child over time for a low-income family. Data interpretation goes beyond mere calculation; it involves extracting meaning from the numbers and translating it into actionable insights.

In this case, after calculating the yearly cost differences, we interpret the data to confirm that the cost of raising a child has increased over time, with the most significant jump occurring between 2001 and 2002. This piece of information can be critical for policy makers, economists, or families as they plan for future financial requirements. Understanding the context and the causes behind the data is equally important, as it could influence strategies to manage, budget, or alleviate such costs.

Importance of Accurate Data Interpretation

• Informed decision making
• Understanding economic and social trends
• Enhancing strategic planning and forecasting
• Improving financial literacy and management