For each of the following pairs of variables indicate


The article "Air Pollution and Medical Care Use by Older Americans" (Health Affairs [2002]: 207-214) gave data on a measure of pollution (in micro- grams of particulate matter per cubic meter of air) and the cost of medical care per person over age 65 for six geographical regions of the United States:

Region Pollution Cost of Medical Care
6.17
-0.08
8.06
0.25
8.62
-0.14
10.56
0
12.45
0.08
11.99
0.03
12.5
-0.07
17.98
0.29
18.29
0.23
19.89
0.24
20.25
0.19
19.07
0.14
17.73
0.05
19.62
0.07

Mean             Temperature (x)   Net Directionality (y)

North

30.0

915

Upper South

31.8

891

Deep South

32.1

968

West South

26.8

972

Big Sky

30.4

952

West

40.0

899

a. Construct a scatterplot of the data. Describe any interesting features of the scatterplot.

b. Find the equation of the least-squares line describing the relationship between y 5 medical cost and x 5 pollution.

c. Is the slope of the least-squares line positive or negative? Is this consistent with your description of the relationship in Part (a)?

d. Do the scatterplot and the equation of the least- squares line support the researchers' conclusion that elderly people who live in more polluted areas have higher medical costs? Explain.

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Microeconomics: For each of the following pairs of variables indicate
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