In order to determine if the homeownership rate in the U.S. is linked with income, state-level data on the homeownership rate (Ownership in %) and median household income (Income in $) were collected. The accompanying data file shows the results. a-1. Estimate the model Ownership = β0 + β1Income + ε. a-2. Interpret the model. multiple choice 1 For every $1 increase in median income, the home ownership rate is expected to increase by 0.02%. For every $1 increase in median income, the home ownership rate is expected to decrease by 0.02%. For every $1 increase in median income, the home ownership rate is expected to increase by 0.0002%. For every $1 increase in median income, the home ownership rate is expected to decrease by 0.0002%. b. What is the standard error of the estimate? Note: Round your answer to 2 decimal places. c-1. Interpret the coefficient of determination. 6.74% of the sample variation in x is explained by the estimated regression equation. 6.74% of the sample variation in y is explained by the estimated regression equation. 4.27% of the sample variation in x is explained by the estimated regression equation. 2.48% of the sample variation in y is explained by the estimated regression equation. c-2. Does this seem like a promising model? Yes No Ownership Income Alabama 73.2 40933 Alaska 65.7 57848 Arizona 66.6 46896 Arkansas 67.9 38587 California 56.1 54283 Colorado 68.5 60233 Connecticut 70.8 65998 Delaware 74.7 55214 DC 45.6 56928 Florida 69.3 44066 Georgia 67.1 44117 Hawaii 56.1 59539 Idaho 72.4 47050 Illinois 68.8 50728 Indiana 71.2 46139 Iowa 71.1 49016 Kansas 67.4 46054 Kentucky 70.3 41104 Louisiana 70.4 39300 Maine 73.8 47931 Maryland 68.9 64201 Massachusetts 65.3 60934 Michigan 74.5 46276 Minnesota 72.6 52321 Mississippi 74.8 38160 Missouri 71.2 45817 Montana 68.1 41280 Nebraska 70.4 52504 Nevada 59.7 51200 New Hampshire 74.9 66633 New Jersey 66.5 62968 New Mexico 68.6 45134 New York 54.5 49781 North Carolina 69.5 43830 North Dakota 67.1 51006 Ohio 69.7 45886 Oklahoma 69.2 43103 Oregon 66.3 50602 Pennsylvania 72.2 48314 Rhode Island 62.8 51623 South Carolina 74.8 41698 South Dakota 70.6 45352 Tennessee 71.0 38591 Texas 65.3 47266 Utah 72.5 56701 Vermont 73.6 55928 Virginia 68.7 60367 Washington 64.4 56163 West Virginia 79.0 42777 Wisconsin 71.0 50351 Wyoming 73.0 52201

In order to determine if the homeownership rate in the U.S. is linked with income, state-level data on the homeownership rate (Ownership in %) and median household income (Income in $) were collected. The accompanying data file shows the results. a-1. Estimate the model Ownership = β0 + β1Income + ε. a-2. Interpret the model. multiple choice 1 For every $1 increase in median income, the home ownership rate is expected to increase by 0.02%. For every $1 increase in median income, the home ownership rate is expected to decrease by 0.02%. For every $1 increase in median income, the home ownership rate is expected to increase by 0.0002%. For every $1 increase in median income, the home ownership rate is expected to decrease by 0.0002%. b. What is the standard error of the estimate? Note: Round your answer to 2 decimal places. c-1. Interpret the coefficient of determination. 6.74% of the sample variation in x is explained by the estimated regression equation. 6.74% of the sample variation in y is explained by the estimated regression equation. 4.27% of the sample variation in x is explained by the estimated regression equation. 2.48% of the sample variation in y is explained by the estimated regression equation. c-2. Does this seem like a promising model? Yes No Ownership Income Alabama 73.2 40933 Alaska 65.7 57848 Arizona 66.6 46896 Arkansas 67.9 38587 California 56.1 54283 Colorado 68.5 60233 Connecticut 70.8 65998 Delaware 74.7 55214 DC 45.6 56928 Florida 69.3 44066 Georgia 67.1 44117 Hawaii 56.1 59539 Idaho 72.4 47050 Illinois 68.8 50728 Indiana 71.2 46139 Iowa 71.1 49016 Kansas 67.4 46054 Kentucky 70.3 41104 Louisiana 70.4 39300 Maine 73.8 47931 Maryland 68.9 64201 Massachusetts 65.3 60934 Michigan 74.5 46276 Minnesota 72.6 52321 Mississippi 74.8 38160 Missouri 71.2 45817 Montana 68.1 41280 Nebraska 70.4 52504 Nevada 59.7 51200 New Hampshire 74.9 66633 New Jersey 66.5 62968 New Mexico 68.6 45134 New York 54.5 49781 North Carolina 69.5 43830 North Dakota 67.1 51006 Ohio 69.7 45886 Oklahoma 69.2 43103 Oregon 66.3 50602 Pennsylvania 72.2 48314 Rhode Island 62.8 51623 South Carolina 74.8 41698 South Dakota 70.6 45352 Tennessee 71.0 38591 Texas 65.3 47266 Utah 72.5 56701 Vermont 73.6 55928 Virginia 68.7 60367 Washington 64.4 56163 West Virginia 79.0 42777 Wisconsin 71.0 50351 Wyoming 73.0 52201

Linear Algebra: A Modern Introduction

4th Edition

ISBN:9781285463247

Author:David Poole

Publisher:David Poole

Chapter4: Eigenvalues And Eigenvectors

Section4.6: Applications And The Perron-frobenius Theorem

Problem 22EQ

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Related questions

Question

a-1. Estimate the model Ownership = β₀ + β₁Income + ε.

a-2. Interpret the model.

multiple choice 1

For every $1 increase in median income, the home ownership rate is expected to increase by 0.02%.
For every $1 increase in median income, the home ownership rate is expected to decrease by 0.02%.
For every $1 increase in median income, the home ownership rate is expected to increase by 0.0002%.

For every $1 increase in median income, the home ownership rate is expected to decrease by 0.0002%.

b. What is the standard error of the estimate? Note: Round your answer to 2 decimal places.

c-1. Interpret the coefficient of determination.

6.74% of the sample variation in x is explained by the estimated regression equation.

6.74% of the sample variation in y is explained by the estimated regression equation.
4.27% of the sample variation in x is explained by the estimated regression equation.
2.48% of the sample variation in y is explained by the estimated regression equation.

c-2. Does this seem like a promising model?

Yes

	Ownership	Income
Alabama	73.2	40933
Alaska	65.7	57848
Arizona	66.6	46896
Arkansas	67.9	38587
California	56.1	54283
Colorado	68.5	60233
Connecticut	70.8	65998
Delaware	74.7	55214
DC	45.6	56928
Florida	69.3	44066
Georgia	67.1	44117
Hawaii	56.1	59539
Idaho	72.4	47050
Illinois	68.8	50728
Indiana	71.2	46139
Iowa	71.1	49016
Kansas	67.4	46054
Kentucky	70.3	41104
Louisiana	70.4	39300
Maine	73.8	47931
Maryland	68.9	64201
Massachusetts	65.3	60934
Michigan	74.5	46276
Minnesota	72.6	52321
Mississippi	74.8	38160
Missouri	71.2	45817
Montana	68.1	41280
Nebraska	70.4	52504
Nevada	59.7	51200
New Hampshire	74.9	66633
New Jersey	66.5	62968
New Mexico	68.6	45134
New York	54.5	49781
North Carolina	69.5	43830
North Dakota	67.1	51006
Ohio	69.7	45886
Oklahoma	69.2	43103
Oregon	66.3	50602
Pennsylvania	72.2	48314
Rhode Island	62.8	51623
South Carolina	74.8	41698
South Dakota	70.6	45352
Tennessee	71.0	38591
Texas	65.3	47266
Utah	72.5	56701
Vermont	73.6	55928
Virginia	68.7	60367
Washington	64.4	56163
West Virginia	79.0	42777
Wisconsin	71.0	50351
Wyoming	73.0	52201

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