For this exercise, round all regression parameters to three decimal places. The following table shows the median income, in thousands of dollars, of American families for 2003 through 2008. Year Income (thousands of dollars) 2003 52.68 2004 54.06 2005 56.19 2006 58.41 2007 61.36 2008 61.52 (a) Use exponential regression to construct an exponential model for the income data. (Let t be years since 2003 and H be the median household income in thousand of dollars.) Answer: H = 52.587 × 1.035t (b) What was the yearly percentage growth rate in median family income during this period? (Use the model found in part (a). Round your answer to one decimal place.) ? %
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
For this exercise, round all regression parameters to three decimal places.
The following table shows the
| Year | Income (thousands of dollars) |
|---|---|
| 2003 | 52.68 |
| 2004 | 54.06 |
| 2005 | 56.19 |
| 2006 | 58.41 |
| 2007 | 61.36 |
| 2008 | 61.52 |
(b) What was the yearly percentage growth rate in median family income during this period? (Use the model found in part (a). Round your answer to one decimal place.)
? %
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
