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Run a simple linear regression of the pairs of numbers

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Question: Compute the sample correlation coefficient for the data of problem.

Problem: An article in the Journal of Monetary Economics assesses the relationship between percentage growth in wealth over a decade and a half of savings for baby boomers of age 40 to 55 with these people's income quartiles. The article presents a table showing five income quartiles, and for each quartile there is a reported percentage growth in wealth. The data are as follows.

Income quartile:              1           2           3           4           5

Wealth growth(%):        17.3       23.6      40.2        45.8      56.8

Run a simple linear regression of these five pairs of numbers and estimate a linear relationship between income and percentage growth in wealth.

Reference no: EM131709579

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