The share of aggregate income held by middle-income households in 1970 was 62%, whereas that held by upper-income households was 29%. The corresponding figures in 2014 were 43% and 49%, respectively. The models describing the fall and the rise in the share of the aggregate incomes of these two groups are approximately linear over the period under consideration.† (a) Find the mathematical models describing the percent share of aggregate income held by each group from 1970 through 2014. (Let t denote the time, in years, with t = 0 corresponding to the beginning of 1970.) middle-income households y = upper-income households y = (b) Find the time when the aggregate income held by upper-income households first exceeded that held by middle-income households. (Give the calendar year in which the change occurred.)
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.
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