The Conference Board produces a Consumer Confidence Index (CCI) that reflects people's feelings about general business conditions, employment opportunities, and their own income prospects. Some researchers may feel that consumer confidence is a function of the median household income. Shown here are the CCIs for 9 years and the median household incomes for the same 9 years published by the U.S. Census Bureau. Determine the equation of the regression line to predict the CCI from the median household income. Compute the standard error of the estimate, for this model. Compute the value of Does median household income appear to be a good predictor of the CCI? Why or why not?
| CCI |
Median Household Income ($1,000) |
| 116.8 |
37.415 |
| 91.5 |
36.770 |
| 68.5 |
35.501 |
| 61.6 |
35.047 |
| 65.9 |
34.700 |
| 90.6 |
34.942 |
| 100.0 |
35.887 |
| 104.6 |
36.306 |
| 125.4 |
37.005 |
*(Do not round the intermediate values. Round your answers to 4 decimal places.)
**(Round the intermediate values to 4 decimal places. Round your answers to 3 decimal places.) and Median household income does not appearappears to be a good predictor of the CCI.