2. Economics
3. the following table gives the values for the year n...

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

###### Question details
1. 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
1.       If aggregate consumption is regressed on disposable income, which variable is the regress and and which variable is the regressor?

1.       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?

1.       For the 10thobservation, what are:

(i.)       the value of the regressor,

(ii.)      the actual value of y,

1. the fitted value of the regression line, and

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

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

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

(i.)       Calculate the R2 term of the estimated model and interpret the R2 term.

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