The data are annual disposable income and total annual consumption for 12 famili

Question

The data are annual disposable income and total annual consumption for 12 families selected at random from a large metropolitan area. Regard annual disposable income (INCOME) as the explanatory variable x and total annual consumption (CONS) as the dependent variable y. Using the software SAS to conduct the linear regression of y on x, answer the questions that follow. The data and SAS codes can be found on Canvas. By specifying appropriate options in the MODEL statement of PROC REG, the answers to all questions below can be directly found from the SAS outputs. · (a). What is the least squares equation? (b). What percentage of the variation in CONS has been explained by the regression? (c). Construct a 95% confidence interval for 1 (d). Conduct a test to determine if 1 is significant at the .05 level of significance. Use two methods: t- value and p-value. (e). Find the estimated standard error of the model s (f). Find the predicted value ofCONS for INCOME = 35000. (g) Construct a 95% confidence interval for the mean value of CONS for INCOME-35000. (h). Construct a 95% prediction interval for a new observation of CONS for INCOME = 35000.

Explanation / Answer

SolutionA:

provide dtaset

SOlutionb:

From out put take the value of R sq:

Solutionc:

run;

SOlutiond:

Null hypothesis:

H0:slope of a regression line=0

alternative hypothesis:

H1:slope of regression line not equla to zero

alpha=0.05

T=

form output

p=

form output:

p<0.05 Reject Null hypothesis

p>0.05 fail to reject null hypothesis

PROVIDE DATSAET NAME OR EXECUTE THE ABOVE CODE SUBTITUTING DATA  

=DS NAME

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