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
![417_squares line on a scatter gram of the data.png](https://secure.tutorsglobe.com/CMSImages/417_squares%20line%20on%20a%20scatter%20gram%20of%20the%20data.png)
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.
- They y-intercept is the average amount pledged.
- The y-intercept is the net worth of someone who pledged $0.
- The y-intercept is the amount pledged by someone with a net worth $0.
- The y-intercept has no meaning.
Interpret the estimate of the slope. Choose from the options below.
- The slope is the average net worth
- The slope is the amount that the net worth is estimated to increase for each unit increase in amount pledged
- The slope is the amount that the amount pledged is estimated to increase for each unit increase in net worth
- The slope has no meaning