a)what is the Pearson correlation value between income and consumption?
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
Related questions
Question

Transcribed Image Text:Date Consumption
28634
288.37
29039
292.20
292 76
29282
29313
29685
29709
29795
29927
30014
30084
30351
30722
30887
31127
31261
31481
31725
31900
32178
32345
32386
32677
32777
32884
33134
33235
33273
333.35
33292
33150
33134
328:14
32344
32167
31957
32076
31999
32106
32308
32451
32717
328.26
32836
32913
32959
33104
33105
33128
33156
33263
33280
333 70
33585
33688
33946
34190
34508
34659
348.50
350:15
35147
352.36
355.50
35743
35987
Q1, 2000
Q2, 2000
Q3, 2000
Q4, 2000
Q1, 2001
Q2, 2001
Q3, 2001
Q4, 2001
Q1, 2002
02, 2002
Q3, 2002
Q4, 2002
Q1, 2003
02, 2003
Q3, 2003
Q4, 2003
Q1, 2004
02, 2004
Q3, 2004
Q4, 2004
Q1,
2005
02, 2005
Q3, 2005
Q4, 2005
Q1, 2006
02, 2006
Q3, 2006
Q4, 2006
Q1, 2007
Q2, 2007
Q3, 2007
Q4, 2007
Q1, 2008
02, 2008
Q3, 2008
Q4, 2008
Q1, 2009
Q2, 2009
Q3, 2009
Q4, 2009
Q1, 2010
Q2, 2010
Q3, 2010
Q4, 2010
Q1, 2011
Q2, 2011
Q3, 2011
Q4, 2011
Q1, 2012
Q2, 2012
Q3, 2012
Q4, 2012
Q1, 2013
Q2, 2013
Q3, 2013
Q4, 2013
Q1, 2014
Q2, 2014
Q3, 2014
Q4, 2014
Q1, 2015
Q2, 2015
Q3, 2015
Q4, 2015
Q1, 2016
Q2, 2016
Q3, 2016
Q4, 2016
Income
31192
31438
31719
31742
31940
31836
32504
32020
32728
32821
32696
32773
32796
33197
33657
33713
33893
34152
34247
34589
34183
34380
34469
34666
35380
35354
35363
35734
35889
35878
35880
35819
35998
36677
35747
35892
35752
35932
35456
35328
35293
35686
35791
35967
36346
36228
36347
36299
36832
37054
36963
37860
36226
36380
36522
36528
36872
37289
37587
37907
38033
38336
38571
38785
38927
39148
39354
39254

Transcribed Image Text:The consumption function captures one of the key relationships in economics. It expresses consumption as a function of disposal income, where disposable income is income after
taxes. The attached file "Regression-Dataset1" shows data of average US annual consumption (in $) and disposable income (in $) for the years 2000 to 2016.
a)what is the Pearson correlation value between income and consumption?
Select one:
Ⓒa. 0.978
b. 0.109
c. None of the above
d. 0.791
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 3 images

Recommended textbooks for you

MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc

Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning

Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning

MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc

Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning

Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning

Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON

The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman

Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman