Problem
The saving function of a random sample of ten families is given as where denote aggregate savings, denotes disposable income real interest rate. The sample data are given in the following table:-
|
20
|
25
|
25
|
30
|
35
|
40
|
43
|
42
|
50
|
55
|
|
100
|
110
|
115
|
120
|
140
|
145
|
145
|
140
|
150
|
160
|
|
2
|
2
|
3
|
2
|
3
|
4
|
3
|
4
|
5
|
5
|
Required:
a) Find the regression equation of the savings on disposable income and real interest rate.
b) Estimate the savings when the disposable income is 180 and real interest rate is 6.
c) Compute the coefficient of multiple determination and adjusted value.
d) Test the significance of the individual regression coefficient at the 5% level of significance.
e) Estimate the confidence limits of the individual regression coefficient at the 95% confidence level.
f) Test the overall significance of regression at 5% level.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.