# Question: the following table gives the values for the year n...

###### Question details

- The following table gives the values for the

Year |
n |
Aggregate Consumption |
Disposable Income |

1988 |
1 |
102 |
114 |

1989 |
2 |
106 |
118 |

1990 |
3 |
108 |
126 |

1991 |
4 |
110 |
130 |

1992 |
5 |
122 |
136 |

1993 |
6 |
124 |
140 |

1994 |
7 |
128 |
148 |

1995 |
8 |
130 |
156 |

1996 |
9 |
142 |
160 |

1997 |
10 |
148 |
164 |

1998 |
11 |
150 |
170 |

1999 |
12 |
154 |
178 |

- If aggregate consumption is regressed on disposable income, which variable is the regress and and which variable is the regressor?

- What is the simple linear regression population model if aggregate cons?

(c.) What is the estimated simple linear regression model in notation form?

(d.) What are the estimated intercept and slope? Interpret the estimated intercept and

slope.

(e.) Write the estimated simple linear regression model using the estimated intercept

and slope?

- For the
10
^{th}observation, what are:

(i.) the value of the regressor,

(ii.) the actual value of y,

- the fitted value of the regression line, and

- the value of the residual. Does the residual lie above or below the regression line? Please explain.

- Calculate the SST, SSE, and SSR of the model.

(h.) Calculate the estimated variances and the standard errors of and .

(i.) Calculate the
R^{2} term of the estimated model and interpret the
R^{2} term.