Chapter 14.4, Problem 33E

(a)

To determine

To calculate: The linear equation of the line that is the best fit for the data using linear regression, with y represents the disposable income and C represents the consumption and the data for the U.S national income disposal income from 2012 to 2040 is tabulated below.

Year	Income	Consumption
$2012$	$10.2$	$9.6$
$2016$	$12.6$	$11.6$
$2020$	$14.2$	$12.9$
$2024$	$15.5$	$14.0$
$2028$	$17.1$	$15.4$
$2032$	$18.5$	$16.8$
$2036$	$20.1$	$18.3$
$2040$	$21.9$	$19.9$

(b)

To determine

To graph: The data and the linear regression line and discuss the fit.

The following table gives the U.S. national consumption and disposable income (both in billions of dollars) for presidential election years from 2012 and projected to 2040.

Year	Income	Consumption
$2012$	$10.2$	$9.6$
$2016$	$12.6$	$11.6$
$2020$	$14.2$	$12.9$
$2024$	$15.5$	$14.0$
$2028$	$17.1$	$15.4$
$2032$	$18.5$	$16.8$
$2036$	$20.1$	$18.3$
$2040$	$21.9$	$19.9$

(c)

To determine

To calculate: The U.S. disposable income when the U.S. national consumption is $\$19$ billion. The following table gives the U.S. national consumption and disposable income (both in billions of dollars) for presidential election years from 2012 and projected to 2040.

Year	Income	Consumption
$2012$	$10.2$	$9.6$
$2016$	$12.6$	$11.6$
$2020$	$14.2$	$12.9$
$2024$	$15.5$	$14.0$
$2028$	$17.1$	$15.4$
$2032$	$18.5$	$16.8$
$2036$	$20.1$	$18.3$
$2040$	$21.9$	$19.9$

(d)

To determine

To calculate: The slope of the reported model and interpret it. The following table gives the U.S. national consumption and disposable income (both in billions of dollars) for presidential election years from 2012 and projected to 2040.

Year	Income	Consumption
$2012$	$10.2$	$9.6$
$2016$	$12.6$	$11.6$
$2020$	$14.2$	$12.9$
$2024$	$15.5$	$14.0$
$2028$	$17.1$	$15.4$
$2032$	$18.5$	$16.8$
$2036$	$20.1$	$18.3$
$2040$	$21.9$	$19.9$