StateIncome ($)Ownership (%)Alabama39,98074.1Alaska61,60466.8Arizona45,73968.9Arkansas36,53868.5California56,13457.0Colorado55,93068.4Connecticut64,85170.5Delaware52,11476.5District of Columbia53,14144.9Florida45,63170.9Georgia43,34067.4Hawaii55,64959.5Idaho46,77875.5Illinois52,87069.1Indiana44,30572.0Iowa50,72172.4Kansas44,71767.4Kentucky42,66471.2Louisiana45,43371.9Maine47,50274.0Maryland64,18669.6Massachusetts59,37365.1Michigan45,99474.5Minnesota56,09072.9Mississippi35,07875.5Missouri48,76972.0Montana40,43770.7Nebraska49,59570.2Nevada51,43462.4New Hampshire64,13176.0New Jersey64,77765.9New Mexico43,54269.1New York50,21654.4North Carolina41,90670.1North Dakota50,07565.7Ohio45,87969.7Oklahoma45,87869.6Oregon49,09868.2Pennsylvania48,17272.2Rhode Island51,63462.9South Carolina41,10174.4South Dakota45,82669.6Tennessee40,51771.1Texas47,47565.4Utah58,49174.1Vermont52,31874.3Virginia60,50169.7Washington60,39265.5West Virginia40,49078.7Wisconsin51,23770.4Wyoming52,47073.8The homeownership rate in the U.S. was 67.4% in 2009. In order to determine if homeownership is linked with income, 2009 state-level data on the homeownership rate (Ownership) and median household income (Income) were collected. A portion of the data is shown in the accompanying Excel.a) Estimate: Ownership = β0 + β1Incomeb) At the 5% significance level, is Income linearly related to Ownership? Show the steps of a hypothesis test using the critical value approach.c) Construct the 95% confidence interval for the expected value of Ownership if Income is $50,000.d) Compare the above confidence interval with the 95% prediction interval for Ownership.Please answer all parts!

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MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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State	Income ($)	Ownership (%)
Alabama	39,980	74.1
Alaska	61,604	66.8
Arizona	45,739	68.9
Arkansas	36,538	68.5
California	56,134	57.0
Colorado	55,930	68.4
Connecticut	64,851	70.5
Delaware	52,114	76.5
District of Columbia	53,141	44.9
Florida	45,631	70.9
Georgia	43,340	67.4
Hawaii	55,649	59.5
Idaho	46,778	75.5
Illinois	52,870	69.1
Indiana	44,305	72.0
Iowa	50,721	72.4
Kansas	44,717	67.4
Kentucky	42,664	71.2
Louisiana	45,433	71.9
Maine	47,502	74.0
Maryland	64,186	69.6
Massachusetts	59,373	65.1
Michigan	45,994	74.5
Minnesota	56,090	72.9
Mississippi	35,078	75.5
Missouri	48,769	72.0
Montana	40,437	70.7
Nebraska	49,595	70.2
Nevada	51,434	62.4
New Hampshire	64,131	76.0
New Jersey	64,777	65.9
New Mexico	43,542	69.1
New York	50,216	54.4
North Carolina	41,906	70.1
North Dakota	50,075	65.7
Ohio	45,879	69.7
Oklahoma	45,878	69.6
Oregon	49,098	68.2
Pennsylvania	48,172	72.2
Rhode Island	51,634	62.9
South Carolina	41,101	74.4
South Dakota	45,826	69.6
Tennessee	40,517	71.1
Texas	47,475	65.4
Utah	58,491	74.1
Vermont	52,318	74.3
Virginia	60,501	69.7
Washington	60,392	65.5
West Virginia	40,490	78.7
Wisconsin	51,237	70.4
Wyoming	52,470	73.8

The homeownership rate in the U.S. was 67.4% in 2009. In order to determine if homeownership is linked with income, 2009 state-level data on the homeownership rate (Ownership) and median household income (Income) were collected. A portion of the data is shown in the accompanying Excel.

a) Estimate: Ownership = β₀ + β₁Income

b) At the 5% significance level, is Income linearly related to Ownership? Show the steps of a hypothesis test using the critical value approach.

c) Construct the 95% confidence interval for the expected value of Ownership if Income is $50,000.

d) Compare the above confidence interval with the 95% prediction interval for Ownership.

Please answer all parts!

Expert Solution