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1. Suppose that you have information on interest rates {X) and in savings (Y) a sample of 50 households xin % 1.0 2.0 3.0 4.0 5.0 0.010.015.0 5.0 0.0 20.0 0.0 10.0 15.0 16.0 2.0 4.0 3.0 1.0 2.0 6.0 5.0 7.0 2.0 6.0 Y in 4.0 thousands $0.5 5.0 5.0 4.0 6.0 8.0 2.02.52.0 0.8 0.2 1.0 2.0 0.5 1.0 2.0 2.0 2.0 2.0 6.0 16.0 1.0 0.0 Review of the Linear Regression Model Compute the following a. Conditional sample mean yyix-4 b. Conditional sample variance σ c. Conditional histogram when X = 2. d. Unconditional mean and standard deviation of Y x=5

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a) Condulumad /savu pļe.vu an y lo 9.3 X-S 1 63 Sample vasiaYyS1 33.12 50 n- 50 28.95

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