Prediction interval for debt payments

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Reference no: EM131798754

Access the data labeled Debt Payments from the text website and estimate Debt = β₀ + β₁ Income + ε , where Debt is the average debt payments for a household in a particular city (in $) and Income is the city's median income (in $1,000s).

a. Construct a 95% confidence interval for expected debt payments if income is $80,000 (remember that income is measured in $1,000s).

b. Construct a 95% prediction interval for debt payments if income is $80,000 (remember that income is measured in $1,000s).

Reference no: EM131798754

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