The Following Data Shows the Yearly Income (In $1,000) and Age

question 39

Essay

The following data shows the yearly income (in $1,000) and age of a sample of seven individuals.

a.Develop the least squares regression equation.
b.Estimate the yearly income of a 30-year-old individual.
c.Compute the coefficient of determination.
d.Use a t test to determine whether the slope is significantly different from zero. Let $\alpha$ = 0.05.
e.At 95% confidence, perform an F test and determine whether or not the model is significant.

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Definitions:

Average Variable Costs

The total variable costs of production divided by the quantity of output produced.

Demand Changes

Variations in the desire or need for a product or service, influenced by factors like price, income levels, and consumer preferences.

Price

The value that must be exchanged to obtain a good or service.

Quantity

Quantity refers to the amount or number of a material or immaterial good or service.