Question

550001 The least-squares regression equation is y = 856.5x +9.410 where y is the median income and x is the percentage of 25 years and older with at least a bachelor's degree in the region. The scatter diagram indicates a linear relation between the two variables with a correlation coefficient of 0.8403. Complete parts (a) through (d). 20000+ 15 20 25 30 35 40 45 50 55 60 Bachelor's 96 (a) Predict the median income of a region in which 30% of adults 25 years and older have at least a bachelor's degree. $ (Round to the nearest dollar as needed.) Enter your answer in the answer box and then click Check Answer

Answer 1

Q1) a) The prediicted median income of a region here is predicted using the regression equation as:

$\hat y = 9410 + 856.5x = 9410 + 856.5*30 = 35105$

Therefore $35,105 is the required predicted value here.

Q2) a) The regression equation here is given as:

$\hat y = -0.0436x + 7.4$

The interpretation of slope here is that for every unit increase in the independent variable that is the literacy rate, the dependent variable age difference falls by 0.0436 units on an average, keeping other things constant.