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Many entrepreneurs have donated money to various causes. Data on the total amount pledged and remaining net worth for the 10 top donors are given in the table. Complete part a through d.
Donor
Pledged ($ Millions)
Net Worth ($ Millions)
1
7,619
4,620
2
5,735
50,520
3
2,043
40,310
4
2,002
7,200
5
1,537
5,480
6
1,098
690
7
1,062
82,430
8
929
2,400
9
923
18,320
10
699
4,920
a. Propose a straight-line model relating amount pledged (y) to net worth (x)
Choose the correct equation below
a. y = β0 + β1 + ∈
b. y = β1 + β0x
c. y = β0 + β1x
d. y = β1 + β0x + ∈
b. Fit the model to the data using the methods of least squares.
c. Graph the least squares line on a scatter gram of the data. Is there visual evidence of a linear relationship between the two variables? Is the relationship positive or negative?
Chose the correct graph below. Note that the axes of the greaphs are measured in millions of dollars
d. Interpret the estimates of the y-intercept and slope in the words of the problem.
Interpret the estimate of the y-intercept. Choose from the option below.
Interpret the estimate of the slope. Choose from the options below.
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