A Linear Regression Model Estimating the Relationship Between Expenditure on Imports

question 96

Essay

A linear regression model estimating the relationship between Expenditure on imports ($) and Annual household income ($) is as follows:
Estimated Expenditure on Imports = 1.35 + 0.11Annual household income.
Interpret the slope.

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Definitions:

Simplify

To reduce a mathematical expression or equation to its simplest form by performing operations and combining like terms.

Evaluate

To calculate the numerical value of an expression or determine the result of an equation.

Function

A function is a relation between a set of inputs and a set of permissible outputs with the property that each input is related to exactly one output.

Simplify

To reduce a mathematical expression or equation to its simplest form by performing all operations and simplifying all terms.