Reference no: EM131753117

The homeownership rate in the U.S. was 63.9% in 2009. In order to determine if homeownership is linked with income, 2009 state level data on homeownership rate (Ownership) and median household income (Income) were collected. The data is shown in the accompanying table.

State       Income    Ownership

 Alabama $37,650   69.8%   

 Alaska $59,274   64.3%   

 Arizona $43,409   65.4%   

 Arkansas $34,208   64.1%   

 California $53,804   54.6%   

 Colorado $53,600   65.6%   

 Connecticut $62,521   68.0%   

 Delaware $49,784   73.1%   

 District of Columbia $50,811   42.9%   

 Florida $43,301   67.3%   

 Georgia $41,010   63.8%   

 Hawaii $53,319   57.0%   

 Idaho $44,448   71.7%   

 Illinois $50,540   66.1%   

 Indiana $41,975   68.2%   

 Iowa $48,391   69.1%   

 Kansas $42,387   63.9%   

 Kentucky $40,334   67.3%   

 Louisiana $43,103   68.2%   

 Maine $45,172   70.4%   

 Maryland $61,856   67.1%   

 Massachusetts $57,043   62.5%   

 Michigan $43,664   70.7%   

 Minnesota $53,760   69.9%   

 Mississippi $32,748   70.5%   

 Missouri $46,439   68.6%   

 Montana $38,107   66.6%   

 Nebraska $47,265   66.9%   

 Nevada $49,104   59.6%   

 New Hampshire $61,801   73.2%   

 New Jersey $62,447   63.5%   

 New Mexico $41,212   65.4%   

 New York $47,886   51.9%   

 North Carolina $39,576   66.2%   

 North Dakota $47,745   62.6%   

 Ohio $43,549   66.2%   

 Oklahoma $43,548   66.1%   

 Oregon $46,768   65.0%   

 Pennsylvania $45,842   68.7%   

 Rhode Island $49,304   60.1%   

 South Carolina $38,771   70.2%   

 South Dakota $43,496   66.1%   

 Tennessee $38,187   67.0%   

 Texas $45,145   62.2%   

 Utah $56,161   71.1%   

 Vermont $49,988   71.0%   

 Virginia $58,171   67.0%   

 Washington $58,062   63.0%   

 West Virginia $38,160   74.2%   

 Wisconsin $48,907   67.2%   

 Wyoming $50,140   70.5%   

Picture Click here for the Excel Data File

a-1. Estimate the model: Ownership = β0 + β1Income + ε. (Negative values should be indicated by minus sign. Round your answers to 4 decimal places.)

 formula349.mml _________ + ____________ income

a-2. Interpret the model.

For a $1Picture000 increase in incomePicture homeownership rate is predicted to decrease by 0.1%.

For a $1Picture000 increase in incomePicture homeownership rate is predicted to decrease by 0.01%.

For a $1Picture000 increase in incomePicture homeownership rate is predicted to decrease by 0.001%.

For a $1Picture000 increase in incomePicture homeownership rate is predicted to decrease by 0.0001%.

b. What is the standard error of the estimate? (Round your answer to 2 decimal places.) se __________

c. Interpret the coefficient of determination.

• 2.68% of the sample variation in y is explained by the estimated regression equation.
• 2.68% of the sample variation in x is explained by the estimated regression equation.
• 3.68% of the sample variation in x is explained by the estimated regression equation.
• 1.68% of the sample variation in y is explained by the estimated regression equation.