- Year Income Consumption 7274 925 7376 945 7475 597 7665 462 7813 804 8134 39 8460 497 8802 401 9002 979 9349 496 9618 26 1 (24.36 KiB) Viewed 50 times
- Year Income Consumption 7274 925 7376 945 7475 597 7665 462 7813 804 8134 39 8460 497 8802 401 9002 979 9349 496 9618 26 2 (33.48 KiB) Viewed 50 times
per capita in the USA. We are investigating whether a linear
relationship exists between the 2 variables. We postulate that
consumption = dependent variable and income = independent
variable.
Q1 = Compute the OLS estimates of the linear regression
model you have written in the previous
question. Consider the scatterplot above
and the following... y=
β0+β1x, y =
dependent variable, β0 = y-intercept (y when
x = 0), β1 = slope, x =
independent variable. After calculations, y=463.17657+
0.77942x.
** PLEASE SHOW THOROUGH CALCULATIONS AND EXPLAIN
CALCULATIONS **
Year Income Consumption 7274.925 7376.945 7475.597 7665.462 7813.804 8134.39 8460.497 8802.401 9002.979 9349.496 9618.26 9824.337 9979.727 10364.18 10675.81 10641.37 10818.95 11199.58 11481.16 11838.17 12039.28 12013.56 12047 12097.09 12468.26 12840.39 13232.91 13535.37 13863.86 14230.62 14416.48 14554.67 14422.72 14608.15 14780.91 15007.67 15202.98 1959 8604.285 1960 8664.368 1961 8796.294 1962 9079.651 1963 9276.482 1964 9807.232 1965 10304.52 1966 10717.34 1967 11063.25 1968 11450.58 1969 11711.25 1970 12024.27 1971 12347.05 1972 12772.04 1973 13540.72 1974 13312.82 1975 13404.45 1976 13795.95 1977 14098.78 1978 14664.96 1979 14902.58 1980 14812.98 1981 15012.22 1982 15000.78 1983 15278.67 1984 16255.69 1985 16600.27 1986 16983.1 1987 17108.86 1988 17623.39 1989 17804.09 1990 17944.64 1991 17757.77 1992 18063.26 1993 18079.16 1994 18331.16 1995 18802.89
Consumption Scatterplot 16000 15000 14000 13000 12000 11000 10000 9000 8000 7000 6000 5000 7000 9000 11000 13000 15000 17000 19000 Income 21000