Friday

October 31, 2014

October 31, 2014

Posted by **hani** on Monday, May 25, 2009 at 1:17pm.

.

.

.

.

.

1.The following table presents the monthly consumption (C) and income (I) of 5 families, in Jordanian Dinars:

(C) (I)

290 400

210 230

200 200

150 220

250 450

A) Plot the data;

B) Write the estimated simple regression model;

C) What is the estimated consumption when the income is 500?

- statistics -
**drwls**, Monday, May 25, 2009 at 2:19pmThe plotting and regression-fitting tool at this site should help you:

http://science.kennesaw.edu/~plaval/applets/LRegression.html

Using this site and entering the C and I values in a table provided, I get the best linear fit to be

C = 0.368 I + 131.524

For I = 500, this results in C = 315.5

- statistics (correction) -
**drwls**, Monday, May 25, 2009 at 2:26pmI made a mistake reading the results of that Java applet that was referenced.

The constant value in that regression fit should be

b = 109.59107,

which makes the best fit

C = 0.368 I + 109.59

Fot I = 500, C = 293.6

- statistics -
**hani**, Monday, May 25, 2009 at 5:11pmthank you so much,but i need the solution i know its can be done on that site but the teacher wants to see the solution in details !

- statistics -
**drwls**, Monday, May 25, 2009 at 9:50pmYou will find the formulas at

http://people.hofstra.edu/Stefan_Waner/realworld/calctopic1/regression.html

The plotting of the graph is also something you will have to do yourself.

**Answer this Question**

**Related Questions**

statistics - 6. According to the records of Enersource, an electric company ...

math - Economicsts frequenly use linear models as approximations fpr more ...

statistics 2 - A Keynesian Consumption Function: In his famous 1936 book, A ...

Econ T/F - If a consumer is in equilibrium and all prices and her income ...

statistics - In determining monthly seasonal indexes for gas consumption, the ...

Math - Suppose C(x) measures an economy's personal consumption expenditure and ...

math - Suppose C(x) measures an economy's personal consumption expenditure and x...

macroeconomics - Assignment questions: When the government reduces its budget ...

Econ - Consider the following consumption function. C = 200 + .75(DPI), Where C ...

Macroeconomics - Suppose the marginal propensity to consume is 0.75. What does ...