1. Business
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  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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