Chapter 14.3, Problem 18AYU

(a)

To determine

To construct: The required correlation matrix.

To determine

To find: Whether multicollinearity is a problem or not.

(b)

To determine

Least-squares regression line.

(c)

To determine

To draw: Residual plots.

To determine

To draw: Boxplot of the residuals.

(d)

To determine

To interpret: Coefficients for the least-squares regression equation.

(e)

To determine

To compute: $R^2$ and adjusted $R^2$.

To determine

To interpret: $R^2$ and adjusted $R^2$.

(f)

To determine

To test: The provided hypothesis.

(g)

To determine

The provided hypothesis.

(h)

To determine

To predict: Mean $\widehat{y}$ (income).

(i)

To determine

To predict: $\widehat{y}$ (income).

(j)

To determine

95% prediction and confidence intervals.