An economist desires to estimate a line that relates personal disposable income (DI) to consumption expenditures (CE). Both DI and CE are in thousands of dollars. The following gives the data for a random sample of nine households of size four.
|
DI
|
25
|
22
|
19
|
36
|
40
|
47
|
28
|
52
|
60
|
|
CE
|
21
|
20
|
17
|
28
|
34
|
41
|
25
|
45
|
51
|
(a) Calculate the least-squares regression line for these data.
(b) Plot the points and the least-squares regression line on the same graph.