(Schedule for exhibit 2)

EXPLANATION OF STATISTICAL PROCEDURE USED IN DERIVING DATA SHOWN ON CHART B

The data shown on chart B have been adjusted to equalize amplitudinal and secular variation among the several series in order to make them comparable for the purpose of analyzing their patterns of movement. The adjustment method is identical for all six series and is explained below.

In order to equalize amplitudinal differences among the series the long-term average for the period January 1949 through March 1951 was computed for each and the individual data were then expressed in terms of deviations from their respective averages. These deviations were then translated into standard deviation units.

To eliminate differences in secular trend a straight line was fitted to the standard deviation units for the period January 1949 through March 1951, and the values computed therefrom were then subtracted from the corresponding actual standard deviation units.

Television set and deep freezer factory sales: Actual and adjusted to eliminate secular trend and to equalize amplitudinal variation―January 1949 through May 1951

1 Adjusted to eliminate secular trend and to equalize amplitudinal variation.

Source: (1) Radio-Television Manufacturers Association. (3) National Electrical Manufacturers Association.

Electric range and refrigerator factory sales: Actual and adjusted to eliminate secular trend and to equalize amplitudinal variation, January 1949 through March 1951

1 Adjusted to eliminate secular trend and to equalize amplitudinal variation.

Source: (1) and (3): National Electrical Manufacturers Association.

Indices of automobile and furniture production: Actual and adjusted to eliminate secular trend and to equalize amplitudinal variation, January 1949 through May 1951

1 Adjusted to eliminate secular trend and to equalize amplitudinal variation.

Source: Board of Governors of the Federal Reserve System, Federal Reserve Bulletin, and Standard & Poor's Corp.

Percentage distribution of prospective buyers of television sets by income groups, 1949

Source: Board of Governors of the Federal Reserve System, Federal Reserve Bulletin, July 1950, p. 786.

EXHIBIT 6

Size of replacement market for television sets and automobiles, 1950

1. Television sets:

(a) Total television homes, end of 1949_
(b) Total television factory sales, 1950.

(c) Size of replacement market: Ratio of 1949 total television
homes to 1950 factory sales_.

2. Automobiles:

(a) Total 1949 passenger-car registrations..

(b) Total passenger car factory sales, 1950.

(c) Size of replacement market: Ratio of 1949 registrations
to 1950 factory sales. -

3, 497, 000 7, 355, 100

0.48

36, 292, 703 6, 665, 628

5. 44 (2) Auto

Source: (1) National Broadcasting Co. and Radio-Television Manufacturers Associations. mobile Manufacturers Association and U. S. Department of Commerce, Bureau of Foreign and Domestic Commerce, Survey of Current Business.

EXHIBIT 7

Size of replacement market for homefurnishings in 1950

I. 1939 MARKET

A. Total $99,000,000 (actual monthly average home furnishing retail sales in 1939 adjusted by consumers' price index of homefurnishings on index base 1935-1939=100: $100, 000, 000÷101.3)

B. New market = X

C. Replacement market Y

D. Equation: X+Y=99

=

II. 1950 MARKET

A. Total $181,000,000 ($344,000,000÷190.2)

B. New market-X times percent growth in new dwelling units started (1939 dwelling units started 515,000, 1950 dwelling units started= 1,396,000; ratio of 1950 to 1939=1,396,000÷515,000=2.71) = 2.71X

C. Replacement market = Y times percent growth in total dwelling units in existence (1940 total dwelling units=37,325,470, 1950 total dwelling units=45,875,000; ratio of 1950 to 1939= 45,875,000÷37,325,470=1.23)

Y=59,000,000 (replacement market in 1939) 1.23 Y=73,000,000 (replacement market in 1950) B. Percent of replacement market to total market: 73÷181=40%

Source: (1) Retail sales of homefurnishings: U. S. Department of Commerce, Bureau of Foreign and Domestic Commerce, Survey of Current Business. (2) Consumers' price index of housefurnishings: Council of Economic Advisers, Economic Indicators. (3) Dwelling units started: U. S. Department of Commerce, Bureau of the Census, Statistical Abstract of the United States, and Council of Economic Advisers, Economic Indicators. (4) Total dwelling units: U. S. Department of Commerce, Bureau of the Census.