Question

A regional planner employed by a public university is studying the demographics of nine counties in the eastern region of an Atlantic seaboard state. She has gathered the following data:

County	Median Income			Median Age	Coastal
A	$	48,157		57.7	1
B		48,568		60.7	1
C		46,816		47.9	1
D		34,876		38.4	0
E		35,478		42.8	0
F		34,465		35.4	0
G		35,026		39.5	0
H		38,599		65.6	0
I		33,315		27.0	0

1. Is there a linear relationship between the median income and median age? (Round your answer to 3 decimal places.)

Yes, the correlation of income and median age is _______

2. Use regression analysis to determine the relationship between median income and median age. (Round your answers to the nearest whole number.)

Income = _____ + _____ median age

3. Interpret the value of the slope in a simple regression equation.

For each increase in age, the income increases _______ on average.

4. Include the aspect that the county is "coastal" or not in a multiple linear regression analysis using a "dummy" variable. (Round your answers to the nearest whole number.)

Income = _____ + ______ Median age + ______ Coastal

5. Test each of the individual coefficients to see if they are significant. (Leave no cells blank - be certain to enter "0" wherever required. Round your answers to 2 decimal places.)

	Predictor t p Constant Median Age Coastal

Answer 1

1)

Yes, the correlation of income and median age is =0.721

2)

Income = 22805 + 362* median age \

3)

For each increase in age, the income increases 362 on average.

4)

Income = 29619 + 137* Median age + 10640* Coastal

5)

	t Stat	P-value
Intercept	90269.67	0.0000
median age	18058.14	0.0000
coastal	54546.92	0.0000