Personal wealth tends to increase with age as older individuals have had more opportunities to earn and invest than younger individuals. The following data were obtained from a random sample of eight individuals and records their total wealth (Y) and their current age (X). Person Total wealth (‘000s of dollars) Y Age (Years) X A 280 36 B 450 72 C 250 48 D 320 51 E 470 80 F 250 40 G 330 55 H 430 72 A part of the output of a regression analysis of Y against X using Excel is given below: SUMMARY OUTPUT Regression Statistics Multiple R 0.954704 R Square 0.91146 Adjusted R Square 0.896703 Standard Error 28.98954 Observations 8 ANOVA df SS MS F Significance F Regression 1 51907.64 51907.64 Residual 6 5042.361 840.3936 Total 7 56950 Coefficients Standard Error t Stat P-value Intercept 45.2159 39.8049 Age 5.3265 0.6777 a. State the estimated regression line and interpret the slope coefficient also explain What is the estimated total personal wealth when a person is 50 years old? (b) What is the value of the coefficient of determination? Interpret it. ALSO Test whether there is a significant relationship between wealth and age at the 10% significance level. Perform the test using the following six steps. Step 1. Statement of the hypotheses Step 2. Standardised test statistic Step 3. Level of significance Step 4. Decision Rule Step 5. Calculation of test statistic Step 6. Conclusion

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

See similar textbooks

Related questions

Concept explainers

Question

Personal wealth tends to increase with age as older individuals have had more opportunities
to earn and invest than younger individuals. The following data were obtained from a random
sample of eight individuals and records their total wealth (Y) and their current age (X).
Person Total wealth (‘000s of dollars)
Y
Age (Years)
X
A 280 36
B 450 72
C 250 48
D 320 51
E 470 80
F 250 40

G 330 55
H 430 72

A part of the output of a regression analysis of Y against X using Excel is given below:
SUMMARY OUTPUT Regression Statistics Multiple R 0.954704 R Square 0.91146 Adjusted R Square 0.896703 Standard Error 28.98954 Observations 8 ANOVA df SS MS F Significance F Regression 1 51907.64 51907.64 Residual 6 5042.361 840.3936 Total 7 56950
Coefficients Standard Error t Stat P-value Intercept 45.2159 39.8049 Age 5.3265 0.6777

a. State the estimated regression line and interpret the slope coefficient also explain What is the estimated total personal wealth when a person is 50 years old?

(b) What is the value of the coefficient of determination? Interpret it. ALSO Test whether there is a significant relationship between wealth and age at the 10%
significance level. Perform the test using the following six steps.
Step 1. Statement of the hypotheses
Step 2. Standardised test statistic
Step 3. Level of significance
Step 4. Decision Rule

Step 5. Calculation of test statistic
Step 6. Conclusion

Expert Solution

Step by step

Solved in 7 steps with 4 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

$Correlation, Regression, and Association$

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.

Similar questions