The Data Listed Below Is the Average Personal Income and Personal

question 60

Essay

The data listed below is the average personal income and personal consumption expenditures based on the survey
conducted in the year 1995 to 2009 in U.S. $$\begin{array}{l}\begin{array} { | c | c | } \hline \text { Personal income } & \text { Personal consumption }\\\mathbf { ( \$ ) } & \text { expenditures } ( \$ \mathbf { \$ } ) \\\hline 23,310 & 18,714 \\\hline 24,444 & 19,569 \\\hline 25,657 & 20,414 \\\hline 27,260 & 21,434 \\\hline 28,336 & 22,738 \\\hline 30,317 & 24,227 \\\hline 31,162 & 25,074 \\\hline 31,448 & 25,865 \\\hline 32,282 & 26,848 \\\hline 33,872 & 28,228 \\\hline 35,423 & 29,818 \\\hline 37,723 & 31,210 \\\hline 39,418 & 32,551 \\\hline 40,156 & 33,273 \\\hline 39,113 & 32,853 \\\hline\end{array}\end{array}$$
a. Develop a scatter chart for the above data. What does this chart indicate about the relationship between average
personal income and personal consumption expenditure?
b. Develop an estimated regression equation showing how personal consumption expenditure is related personal
income.
c. What proportion of variation in the sample values of proportion of personal consumption expenditure does this
model explain?

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Definitions:

Emotional Experiences

The complex psychological states resulting from the cognition, actions, and physiological arousal in response to stimuli.

Relationship with Happiness

The association between personal connections and emotional well-being, suggesting that strong, healthy relationships contribute to higher levels of happiness.

Love

A complex set of emotions, behaviors, and beliefs associated with strong feelings of affection, protectiveness, warmth, and respect for another person.

Marriage

A legally and socially sanctioned union between individuals that establishes rights and obligations between them.