The article is by Matt Philips and published in the New York Times on August 18th, 2020. The article discusses the growth of the stock market despite the coronavirus crisis. According to the author, the S&P 500 has hit a record high since its last decrease in the months of February and March. The author notes that despite the widespread economic devastation, investors are casting aside the bad news and investing in the stock market. The investment in S & P 500 shows that the impact of the coronavirus that has held the world’s economy hostage is abating. The author shows that the rate at which the virus is spreading has reduced by 16 percent with signs of the percentage going even lower. The economy is also improving with over 1.8 million new jobs added in the month of July. The article discusses how companies like Amazon.com have had a rise in their stock prices (by 4.0 percent) and how the market has rebounded after a collapse of nearly 34 percent in February (Phillips, 3).
The article uses descriptive statistics to summarize statistical data and to make it more understandable to the average reader (Conner, 1). The article uses the measures of frequency to communicate statistical information to the reader. There is a constant use of percentage in the article comparing the rise and fall of the stock market. For instance, the article shows how a company like Amazon’s stock has gone up by 4.0% (Phillips, 3). The 4.0% is used to show the level of growth of the shares’ value unlike representing raw data that a reader might not have another basis of comparison. The article also talks of how the stock market went down by 34% in February and how it is now catching up. It also shows how the Gross Domestic Product (GDP)
of the United States of America has down by 10% in the second quarter of the year 2020. The article thus uses a percentage as a way to describe statistical information to support its claims.
Application of the Article
The article applies to the real world in that it puts an emphasis on the economy and how it affects the lives of individuals. The article talks of how the coronavirus pandemic affects the economy and how a poor or failing economy leads to social-economic problems such as unemployment in the country. The nature of the economy affects investors, businesses, and individuals. As seen through the crisis, the drop in the economy led to the loss of millions of jobs with many companies collapsing and others having to shut down periodically (Phillips, 3). Economic statistics thus affect the world of business and how investors make an economic decision. In the long run, it affects the individual citizen who in one way or another is affected by the economic conditions in the country. When the stock market falls, for instance, it reduces funding available to businesses and this reduces the amount of consumer spending. Eventually, it leads to a spiral of the economy, which devastates economic growth.
The rationale for use of Descriptive Data
The article uses descriptive statistics as a way of representing data in a more meaningful way, a way through which the intended readers understand. The use of descriptive statistics allows a simpler interpretation of the data being presented. If the author used just raw data to represent statistical information, it makes it hard for the reader to visualize what the data is trying to show (Kaur, Stoltzfus & Yellapu, 2). The article uses descriptive statistics as a way of summarizing a large group of statistical data that would otherwise confuse the reader. It is thus a way through which the author represents a quantitative analysis of the economy of the country and the effects of the coronavirus pandemic in a simple form.